It was an opportunity not to be missed – While some newcomers to the cryptosphere may have been impressed by the 20 percent drop in Bitcoin (BTC) prices, the more seasoned investors seem to have taken advantage of it.
This is the case of PayPal and its new offer to buy crypto-actives.
242 million dollars of cryptos exchanged on PayPal’s provider
That was the big news at the end of last year: the digital payment giant PayPal was going to offer Bitcoin and a few other cryptos to its many users. It’s now done – for US customers at least – and it already seems to be generating large volumes of transactions via PayPal.
Indeed, while the price of Bitcoin has been falling sharply over the last few days, trading volumes on Paxos‘ itBit crypto-fiat platform have reached a new record. And it is precisely through its partnership with itBit and Paxos that the giant PayPal supplies itself with cryptomoney.
As shown in the graph below from the data aggregator Nomics, the itBit crypto-swap experienced a new high in exchange volume at $242.5 million on January 11th. The previous record, set on January 6, was only $129 million, for comparison.
itBit Cryptomonanias Exchange Volumes on the itBit Platform (in millions of dollars)
Is Bitcoin’s arrival in the retail sector responsible for this increase?
Even if we cannot consider for sure that the vast majority of the exchanges on itBit are due to PayPal, extrapolation remains possible. In fact, the trading platform had never exceeded a daily volume of more than $5 million before PayPal’s fanfare announcement.
According to a tweet from Alex Saunders, enthusiastic CEO of Nugget’s News, these recent increases in trading volumes could indicate PayPal’s „retail arrival“ in the crypto-game.
Similarly, Elias Simos points out on Twitter that whale addresses (very big investors) seem to have become stronger in Bitcoin, especially over the last few days (image on the right below).
The increase in the balance of these addresses in the midst of falling prices suggests that professional and wealthy investors have once again taken advantage of the panic of small holders to buy the dip!