Bitcoin transaction volume on the worldwide financial service platform, PayPal, hit $145.60 million on October 20, just as the standard cryptocurrency surged toward a new all-time high of around $67,000. The most recent rise in transactions was the highest recorded since the May 19 Bitcoin price meltdown, which saw the cryptocurrency plummet from roughly $43,500 to as low as $30,000.
On the day in question, almost $304 million worth of Bitcoin changed ownership, nearly doubling the amount recorded on October 20. Although the volumes increased in both instances, it was not obvious if the increase was attributable to an uptick in purchasing during the Bitcoin price climb or to sell off near the recently recorded highs. Whatever the cause, the PayPal data on Oct. 20 indicated an increase in retail activity, which was corroborated by an increase in internet searches for the keyword “Bitcoin.”
Is Retail Booming?
Particularly notable is the fact that PayPal permits consumers to begin investing in Bitcoin with as little as $1. As an outcome, the payment service provider has established itself as a credible platform for individual investors, a development that the industry believes may pave the way for greater use of cryptocurrencies.
According to an interesting development, following PayPal’s entry into the cryptocurrency sector, the total number of unique addresses holding at least $1 worth of Bitcoin has increased from 26.83 million on November 20, 2020, to 33.89 million at the time of publication. However, on October 20, the total number of people was 34.12 million, which was a record.
PayPal’s entry into the cryptocurrency business, according to Alexander Vasiliev, co-founder, and chief commercial officer of cryptocurrency payment provider Mercuryo, is a hint of a retail boom. He predicted that Bitcoin would end the last quarter of 2021 in the green, as average traders seek safety nets against inflation that is continuing to rise.
“As a result of the increased purchasing pressure from PayPal account holders and the resulting impact on the Bitcoin price, a significant up-shoot in the final quarter and as the year draws to a close is expected,” Vasiliev told reporters. He added that “the business has a large customer base and that a huge buy-up of Bitcoin can successfully push Bitcoin to unimaginable heights. Due to the current price of the ATH at $67k, we could see a worst-case price drop of $80,000 by year’s end and a best-case price drop of $100,000.”
However, PayPal’s crypto products are only accessible in the United States and the U.k., even though the company has approximately 392 million active customers globally. Nevertheless, the company is considering a move into the decentralized finance (DeFi) industry, marking a shift away from the Bitcoin-centric business model.