The new DEFI platform enters the market! Earn passively - token sale 0.25 $ I'm going in!

PayPal records biggest Bitcoin volume since BTC price crash in May

6 min reading

Global payments service provider PayPal's Bitcoin (BTC) trading volume hit $145.60 million on October 20, just as cryptocurrencies rose to a record high of nearly $67,000.


Global payments service provider PayPal's Bitcoin (BTC) trading volume hit $145.60 million on October 20, just as cryptocurrencies rose to a record high of nearly $67,000. The latest spike in volume turned out to be the highest since Bitcoin price dropped on May 19, from around $43,500 to just $30,000. During the day, about $304 million worth of BTC changed hands, nearly double the volume listed on October 20. However, in either case, it is unclear whether the volume was due to increased buying during Bitcoin's rally or selling near new highs. Whatever the reason, PayPal's figures reflect a spike in retail activity on October 20, further corroborated by a surge in internet demand for the keyword Bitcoin.

PayPal in particular allows consumers to start investing in Bitcoin with an investment of just $1. As a result, the payment services company has developed into a viable platform for private investors, which the industry sees as a sign of wider acceptance of crypto. Interestingly, the number of unique addresses containing at least $1 worth of BTC rose from 26.83 million on November 20, 2020 to 33.89 million during the press after PayPal invaded the crypto sector. Meanwhile, on October 20, the number reached 34.12 million, an all-time high. Alexander Vassiliev, co-founder/main customer of crypto payment service Mercuryo, sees PayPal's foray into the crypto industry as a sign of a retail boom. He expects Bitcoin to recoup its gains in the fourth and final quarter of 2021 as day traders seek a safety net against soaring inflation.

“Increased buying pressure from PayPal users and the associated impact on Bitcoin prices could result in significant growth in the fourth quarter and end of this year,” Vassiliev said, adding: “This company has millions of customers and a large purchase of BTC could effectively push Bitcoin to new heights [...] a $100,000 scenario. " PayPal has around 392 million active users worldwide, but its crypto services are only available in the US and UK. Meanwhile, the company is also hoping to enter the decentralized finance (DeFi) sector, signaling expansion beyond the bitcoin sector.

Bitcoin (BTC) remained near $60,000 on October 22, after the largest altcoin, Ether (ETH), failed to consolidate new all-time highs. ETH/USD just coincided with Bitstamp's record of $4,380 before receiving a gross rejection. Traders are watching closely as Ether appears to be following Bitcoin to new levels historically, only to encounter immediate resistance and drop sharply to lower territory. Trader and analyst Rekt Capital called the event a "complete rejection of image". At the time of writing, ETH/USD is hovering around $4,150 and holding at $4,000 as support, with the exception of the lightning bolt that immediately follows the all-time rematch. Ether fared better against Bitcoin, with the ETH/BTC pair bouncing near the bottom, most recently in late July. Having also failed to sustain much higher levels, Bitcoin itself took a long hiatus as an overheated market cooled their excitement. Funding levels normalized on Friday after hitting levels reminiscent of April highs.

However, as with open interest, they are not as severe as second-quarter fever, which hit $64,900 this week. “This means that there may still be room for more euphoria, but we are at a level that is slowly expanding the market,” commented crypto trading firm QCP Capital in its latest market update. The exchange (ETF) of the Bitcoin ProShares strategy is approaching the limit of allowable futures contracts after quickly becoming too popular.

After just a few trading days, the ProShares ETF reached 1,900 contracts sold in October and had a 2,000 previous month cap imposed by the Chicago Mercantile Exchange. There are already 1,400 contracts for November and there is a maximum of 5,000 open contracts according to Bloomberg. One solution is to offer longer contracts, but this carries the risk of moving yourself too far from the Bitcoin (BTC) price.

ETF Store chairman Nate Geraci commented that the fund may be starting to diverge from market prices, adding: “ETFs are forced to gain exposure to the price of Bitcoin at an increasingly higher price as it crosses the futures curve.” The launch of competitor products such as the Valkyrie Bitcoin Strategy ETF, launched today, and the VanEck ETF, which is expected to trade on Monday 25 October, could dampen demand for ProShares funds. According the ProShares ETF became the first fund of its kind to reach $1 billion in assets under management in just two days. He broke the 18-year record previously held by the gold fund, which did so on three occasions. Bloomberg ETF senior analyst Eric Balcunas said the momentum is still hard to stop at this stage. "BITO's unprecedented initial volume snowballed as liquidity and assets resulted in more liquidity and assets."

Balchunas also believes that Bitcoin's future success could accelerate the approval of spot-based Bitcoin ETFs. "The success, general functioning of the ETF and clear questions about potential futures capacity could lead the SEC to review or expand the trading venue." The US Securities and Exchange Commission may have approved the exchange (ETF) of VanEck managing VanEck's Bitcoin strategy, and trading is expected to begin on Monday.

On Wednesday, the SEC said VanEck said a public offering of the Bitcoin Strategy ETF (BTC), which provides exposure to crypto assets via futures contracts, will be "as soon as possible" after the Effective Date, Saturday, begins. This suggests the company may list its shares on Monday. Unlike exchange-traded funds that offer direct exposure to BTC or Ether (ETH) – not approved by the SEC – the VanEck ETF offers exposure through cash-settled future BTC contracts that are traded on an exchange registered with the Trading Commission. and other products traded on exchanges. After the first application for a futures-related BTC ETF in August, VanEck ProShares could follow suit, which launched its Bitcoin strategy ETF on the New York Stock Exchange on Monday.

The list of potential VanEck ETFs appears when BTC and ETH prices hit new all-time highs. BTC and ETH are priced at $65,955 and $4,003, respectively, according to recent data. Driven largely by Bitcoin price developments, the total crypto market cap also hit a new high of around $2.63 trillion.

Currency Exchange rate Buy cryptocurrency

Buy crypto now

Dear customer,

We use cookies to provide our services correctly and safely. Cookies are small text-based data sets that shall be saved on the device you are using in connection with the use of this instnat website. Cookies are created in order to ensure proper functioning of thes instant website. By clicking the button "I accept and go to the website", you implicitly agree to creation of the cookies on your computer and to deploy automatic tracking and data collection and processing on behalf of the Lushup Holdings FZ LEE. Click the above-captioned button is also tantamount to accepting website's privacy policy. Closing the notification by means of "X" is unequivocally connected with your consent. If you do not agree to any of the above, please discontinue using our Website.

“Cookies” shall make an identification of the software used by you and to customization of this instant website to your needs. Cookies contain the name of the domain from which they origin, duration of period of their storage on your computer and an assigned value.

Third party cookies:
We also use third-party cookies for the following purposes:

  • creating statistics - helping to understand the way Users use the Website, which allows to improve its structure and content with use of the analytical tools
  • defining a user profile - in order to display custom-tailored content in advertising networks.

External entities that might be source of any third-party cookies on this instant Website are as follows:

Using a settings of your web browser or by using pre-set configuration tools available in our service you can independently and at any time change the settings concerning your use of the “cookies”, specifying the conditionsof their storage and how your device is creating and downloading them. These settings can be changed to block the automatic handling of cookies in the settings of your web browser or inform about their placement on your device each time.

Detailed information about the options related to use of “cookies” is available in the settings of your software (web browser).

Service privacy policy

This instant document lays out the principles of the Privacy Policy on the website (hereinafter referred to as the "Website" or "Service"). The administrator of the Website is Lushup Holdings FZ LEE, Fujairah - Creative Tower, P.O.Box 4422 Fujairah, United Arabs Emirates.

The full document to read the Tokeneo privacy policy is available in this document.

Advanced settings can be changed in your browser.