Bitcoin (BTC) trading volume with global payment service provider PayPal hit $ 145.60 million on October 20, while the benchmark cryptocurrency hit a record high of around $ 67,000.
The recent increase in volume was the highest since the bitcoin price crash on May 19, from roughly $ 43,500 to $ 30,000. BTC traded for $ 304 million that day, nearly double the volume recorded on October 20.
PayPal bitcoin sizes. Source: ByBt.com
In both cases, however, it was unclear if these volumes were the result of increased buying during the Bitcoin rally or selling near recent highs. Whatever the reason, PayPal’s readings reflected an increase in retail activity on October 20, as evidenced by an increase in Internet searches for the keyword bitcoin.
Interest in Bitcoin on the Internet peaked on Wednesday. Source: Google Trends.
A retail boom?
Specifically, PayPal allows users to start investing in bitcoin by depositing as little as $ 1. As a result, the payment services company developed into a viable platform for retail investors, which the industry saw as a signal of wider adoption. cryptocurrencies.
Interestingly, since PayPal entered the crypto sector, the total number of unique addresses with at least US $ 1 bitcoin has increased from 26.83 million on Nov 20, 2020 to 33.89 million at the time of writing. Meanwhile, on October 20, this figure was 34.12 million, which is a record figure.
BTC addresses with a balance of more than $ 1. Source: CoinMetrics, Messari.
Alexander Vasiliev, Co-Founder / Director of Customer Relations at cryptocurrency payments service Mercuryo, sees PayPal’s entry into the cryptocurrency market as a sign of a retail boom. He predicted that bitcoin would stop making profits in the fourth and final quarter of 2021 as traders look every day for systems to guard against ever-increasing inflation.
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“Increased buying pressure from PayPal users and its corresponding impact on the bitcoin price could lead to significant gains this fourth quarter and towards the end of the year,” Vasiliev told Cointelegraph, adding:
“The company has millions of customers, and the bulk purchase of BTC can effectively push Bitcoin to new heights. […] By accepting the $ 67,000 banknote, we can see the worst $ 80,000 by the end of the year and the best scenario for the $ 100,000 case. “.
PayPal has around 392 million active users worldwide, but crypto services are only available in the US and UK. Meanwhile, the company is also looking to enter the Decentralized Financial Sector (DeFi), which indicates expansion beyond the bitcoin sector.