PayPal records its biggest ever crypto volume in one day as global market cap re-takes $1T. Wall Street has seen modest losses.
Who would assume a centralized web2 payments company will be mentioned in a similar sentence as “Bitcoin recovery.” It is exactly what happened yesterday as PayPal publicized that it had broken its previous trading volume record.
Some $242M worth of digital assets seemed to have moved through the platform, beating its previous high of $129M set a week ago, data from Nomics indicated. The data is acquired by looking at the exchange numbers produced by itBit; the exchange PayPal has chosen to buy its crypto through. While it is not yet clear if the surge in volume was related to PayPal, itBit’s volume performance never climbed above $5M in the year leading up to the PayPal announcement. Its numbers have grown exponentially since then.
As prediction continues, many are eager to know if the sudden surge in volume was because of the investors cashing in or out. The data hasn’t been revealed yet. But Bitcoin’s recovery began last Monday evening and gained momentum as the news broke of PayPal’s blockbuster day. As of now, BTC’s price is back to over $35,000 and seems to be recovering.
Amidst the PayPal news, big-time Bitcoin holders seem to have spurred the recovery by buying the dip. It is according to Elias Simos on Twitter. He has found out that wallet addresses with more than 1,000 BTC have grown while the markets have turned down in the research.
He noted that wallets with 1,000 Bitcoin and above have been growing faster than any other. By the other end of the spectrum, addresses that hold less than 0.1 have been declining, suggesting that retail investors cashed out as markets turned, where bigger investors have seen this as a good time to buy.
This means that the crypto market had a more strong day. During yesterday’s Market Watch global crypto market cap had sunk to just above $900B; today, it has hit $1T. A big difference made in a day.
The top 20 cryptocurrencies by market cap have created gains, with the two largest winners being HEX and Stellar, who have seen 18% gains in the past 24 hours.
It is a quiet day on Wall Street for investors. The Dow Jones, closing down to 0.29%, the S&P 0.66%, and the Nasdaq down 1.25%. While it might seem like a bad day for business, all markets are up to more than 3% for the week, displaying a minor glitch in an otherwise strong start to 2021.
Future Markets have been turning green as traders are split over either waiting for an expected correction after 2020’s astonishing performance or to focus on what is expected to be a year where the economy and companies tortured by COVID start to create a comeback.
“Widespread speculation of an imminent stock market bubble, not to mention calls for a potentially sharp correction in the first half of 2021, only to be followed up by strength during the second half, represents excessive consensus… which only makes us want to go the other way,”
BMO Capital Markets strategist Brian Belski
Tech stocks like Apple and Facebook have seen further losses as investors fear more regulation is coming under a Democrat-led Senate.
Twitter has also seen a sharp downturn in its stock price after banning Donald Trump from its platform permanently. While Trump was undoubtedly a corrosive figure on the platform, he helped increase the social networks’ user base and increase the number of monetizable daily active users.
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