PayPal Users Bought $242 Million Worth of Cryptocurrencies During The Sell-off
Retail is here as search interest for ‘Bitcoin’ on Google Trends is nearing its 2017 peak while for ‘Ethereum,’ it has already gone beyond.
As much as weaker and newer hands sold their Bitcoin and cryptocurrency, there were just as eager people ready to buy them at a discount. And PayPal users were among those who bought the dips aggressively.
“I sensed a lot of capital was on the sidelines waiting for a dip or in the process of onboarding to deploy into crypto. Then I looked at PayPal's volume, and I see monster ATH levels – nearly 2x the prior volume peak 5 days ago. Distributed 60% BTC & 40% ETH,” noted Santiago R Santos, Partner at Parafi Capital.
This is signaling the entry of retail, which, as we reported, has been seen trickling in with volume on exchanges going haywire.
Cryptocurrency exchanges also recorded all-time high volume, but despite all the revenue they are generating from these monster volumes, they are unable to provide good services, and just when the time comes to take advantage of the buy the dip or sell the top opportunity, they crash down.
Coinbase had its record daily volume on Monday at $9.56 billion, more than the total volume the exchange saw in Q1 2019, which led to buy orders not completing on the platform.
Regulated derivatives exchange catering institutions, CME also had another record day with nearly $5 billion traded.
Spot volumes growing 10x in last six months pic.twitter.com/hCCTHC2p6E
— skew (@skewdotcom) January 11, 2021
Amidst this, the available supply of exchanges continues to drop, moving off exchanges and into cold storage, further fueling the lower supply, high demand phenomena.
Overall, the largest network stands strong with everything from hash rate, difficulty, illiquid supply, active addresses, active entities to non-zero BTC addresses and the number of whales at their all-time high.