Yesterday there was a new historical record for daily bitcoin trading volume on PayPal .
PayPal users traded more than $300m #Bitcoin in one day – a new record for the company.
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) June 8, 2021
In fact, in just one day, bitcoins were exchanged on PayPal for a total value of more than 300 million dollars.
The previous record, however, was not much lower, given that already on May 19 , on the day of the great flash crash, 300 million had been reached.
Probably also yesterday’s record is due to the sharp drop in the price , since in just two days BTC lost 14%, and then rebounded with a + 7.5%.
On May 19, the minimum peak of the last few months was reached, at an altitude of $ 30,000, while yesterday the price fell, remaining however always above $ 31,000.
To tell the truth, already on May 23 the price had returned to around $ 31,000, but in the following days it had rebounded to touch $ 40,000 again, before falling back to around $ 34,000.
After a few days of lateralization, it had returned to $ 39,000 at the beginning of June, before starting a new descent that may have ended yesterday.
Bitcoin trading records on Paypal
The fact that trading spikes on PayPal, which is an exchange platform used exclusively by retail investors during these descents, suggests that these retail investors may have played an important, if not decisive, role during these drops.
In fact, according to an analysis by Santiment , the whales seem to be buying in order to take advantage of the current lower prices to accumulate bitcoin. If whales buy, it is plausible that retailers are selling at decreasing prices, perhaps attracted by other investments.
For example, in the last month, while the price of bitcoin was losing more than 45%, the stock Gamestop (GME) has gained more than 120%, having lost 50% since March.
It is possible that the main motivation that is driving retailers to sell bitcoin is panic, or the fear of suffering further losses, but it could also affect a greater presumed attractiveness of other stocks that are performing well.
On the other hand, many retailers are often not looking for good investments, but only for real bets in the hope of earning a lot in a short time, and performances such as that of GME’s price can easily deceive that this is possible. It remains to be seen how retailers will behave if the price of stocks such as Gamestop’s should fall again.