Yesterday at PayPal there was a new all-time high for the daily trading volume of Bitcoin.
In just one day, more than $ 300 million in bitcoins at PayPal.
Although the previous record was not much lower, since the figure had already reached 300 million on May 19, the day of the great flash crash.
Yesterday's record was likely due to the sharp drop in price, as BTC lost 14% in just two days, only to rebound with a 7.5% gain.
On May 19, BTC reached its lowest peak in recent months at $ 30,000, while yesterday the price dropped but still remained above $ 31,000.
In fact, on May 23 the price had already returned to around $ 31,000, but in the following days it rebounded to reach $ 40,000 again, before falling again to about $ 34,000.
After a few days of lateralization, in early June the price returned to $ 39,000, and then began a new decline that could have ended yesterday.
Bitcoin transactions on PayPal
The fact that during these declines there are spikes in the trading of PayPal, which is a trading platform used exclusively by retail investors, suggests that these retail investors may have played an important role, if not decisive, during these descents.
In fact, according to an analysis by Santiment, whales seem to be buying to take advantage of the current low prices to accumulate Bitcoin. If whales are buying, it is plausible that retailers are selling at lower prices, perhaps lured by other investments.
For example, in the last month, while the price of Bitcoin lost more than 45%, the shares of Gamestop (GME) gained more than 120%, after losing 50% since March.
The main motivation for retailers to sell bitcoins may be panic and fear of further losses, but it could also be due to the supposed lure of other stocks that are doing well.
On the other hand, many retailers are often not looking for good investments, but only real bets in the hope of making a lot of money in a short period of time, and results like GME's price can easily fool them into thinking this is possible. It remains to be seen how retailers will behave in the event that the price of shares like Gamestop falls again.