This usually happens when you’ve made a lot of transactions on paypal (Paid through goods and services) in a short period of time. When the paypal algorithm notices unusual activity (if you buy and sell alot online) it will block your bank account for security reasons (as alot of scammers use paypal as their transaction method) for a period of time until payment cases are confirmed with no problems. If you have “money on hold” in your paypal account, you need to settle that. The buyer has to go to paypal website (computer, not app) and click on “confirm payment” to free the money up for you. This lets the algorithm know that the buyers are satisfied with your service and that you’re not scamming online and your account block will be removed. There’s no real way to immediately settle this issue, you just have to wait (and settle ongoing transactions) for paypal’s algorithm to automatically open up you bank account. Usually takes 2-3 days for me.
Ps. If you have balance in your paypal however, you can still use that. So if you get someone to transfer you money on paypal and you wire them the amount using bank transfer, you have money in your paypal account and will be able to transfer using that.