Payment giant PayPal recorded a record volume of cryptocurrency trading on the platform. On January 11, users conducted $242 million worth of transactions. However, it is unclear whether the volume was due to an increase in purchases during a period of decline, or whether traders sold their holdings in panic after prices fell.
Analyst and cryptocurrency specialist and founder of Nugget's News, Alex Saunders points out that yesterday's record of cryptocurrency trading by PayPal is almost double the previous record of $129 million on January 6. According to him, the new ATH was caused by retail investors.
PayPal's direct involvement in digital currencies came last year when the platform made it possible to buy, sell and hold BTC and 3 other popular cryptocurrencies. This move was promoted throughout the crypto industry and seen as a mainstream adoption of cryptocurrencies.
Bitcoin prices have remained very rallying since last month and peaked above $41,000. While many see this rally as a bubble, there are almost no signs of a slowdown. Even during the recent decline, the number of wallets containing more than 1,000 bitcoin only increased, meaning whales were still stocking up on new BTC. However, wallets with less than 0.1 BTC have fallen, meaning as Elias Simos said, whales are buying BTC from small individual investors. Larger players remain optimistic about Bitcoin's continued rally and are not selling out.