"Peter and Kelley are fully dating, but they aren't admitting it to people," one source told Us, noting that the pair are well aware they may receive backlash.
"She has been much more careful and has been staying in her house ever since her incident with Peter while walking on the Riverwalk in Chicago and doesn't want to be criticized all over the Internet."
Peter and Kelley have been self-isolating with each other for about a month now in her hometown of Chicago, IL, amid the ongoing coronavirus pandemic.
Although Peter claimed earlier this month he and Kelley aren't together, dating speculation still lingers given the pair had obvious chemistry onThe Bachelor's 24th season and Peter initially thought they were destined to be together since they had met by chance at a hotel before his season even began filming last year.
"I think it's fair for them to come out and say what they want to say, but the only thing I can say is that they look really cute together and their interactions are really cute as well," The Bachelorette alum Dustin Kendrick, who has also been social distancing with Peter and Kelley in Chicago, told Us earlier this month.
"I'm sure you'll be possibly hearing stuff in the future from them, but I'll let them say that."
Peter told Nick Viall on his The Viall Files podcast earlier this month he and Kelley were not a couple; however, the pilot admitted he could envision them dating down the road.
"Are we dating? No. Do I love spending time with her? Absolutely. We're not dating. Could I see that in the future? I'm always transparent -- yeah, of course," Peter said at the time.
"I could definitely see that in the future. I'd be extremely lucky and very happy if that happened... I think the world of her."
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Peter also reportedly told Kaitlyn Bristowe on a recent episode of her podcast he's "crushing" on Kelley.
"We have just been enjoying each other's time and company, I love being around her," Peter said on Off the Vine, Us reported. "She's been so amazing, so patient with me. It's exactly... what I needed in this kind of situation and I'm so grateful for her."
In the meantime, Kelley has reportedly "liked" tweets about her dating Peter.
"I was definitely hurt and thrown off by that whole situation... To be honest, what was really confusing to me is that two days before he was spotted in Chicago, he was calling me and texting me, being like, 'I miss you, let's get back together!' I mean, I think that to me was a little confusing," Madison told Kaitlyn on the April 21 episode of Off the Vine.
Madison revealed the reunion caught her totally "off-guard," as neither Peter or Kelley -- who was supposedly her best friend while filming The Bachelor -- warned her that they'd be spending time together.
Madison said she found out with the rest of the world when Peter "got caught" and she saw flirty photographs that leaked online, one of which had captured Peter carrying Kelley over his shoulder.
"When all the pictures got leaked and everything went out, it was on my birthday... [Peter] texted me after [the news] had been out for a couple of days. He sent me this long, long text just kind of explaining himself, but not really," Madison told Kaitlyn.
"@madiprew you'd think you'd have a little more respect for this situation given we both know there's more to the story..." Peter commented on a post about Madison's podcast interview with Kaitlyn on the Instagram account @bachelornation.scoop.
Peter then unfollowed Madison on Instagram, according to Cosmopolitan magazine.
However, Peter broke up with Hannah Ann in January because he couldn't give the model his whole heart, which resulted in Peter and Madison reconciling and giving their mutual love another shot on The Bachelor's March 10 finale. But the couple announced their decision to split two days later.