PayPal users buy huge amounts of cryptocurrencies
PayPal buys 70% of cryptocurrencies to meet the demand for its crypto services, which include ETH, LTC, and BCH. Companies that have invested in Bitcoin have already accumulated about $ 15 billion, or 842,229 BTC.
The demand for BTC exceeded the supply
Pantera Capital has published a report on the impact of major players entering the cryptocurrency market. In this report the investment company claims that Square and PayPal have increased buying pressure on Bitcoin. Thus, the price of Bitcoin has increased significantly.
At the time of publication, BTC was trading at $ 18,660 with an increase of 2.79% over the past 24 hours. In the weekly and monthly charts, the profit is 13.98% and 55.68%, respectively. In terms of market capitalization, Bitcoin has reached a new historical high, exceeding $ 350 billion, as noted by Mastercard in the crypto community.
The current rally, according to Pantera Capital, shows signs that it is more “sustainable” than in 2017, as it relies on institutional demand. Thus, the price of BTC may go beyond the new historical maximum. The investment company determined that PayPal – 70%, together with Square-40% buys more than there are offers. They do this by increasing their offer for each asset.
According to the requirements of the Bitlicense, which PayPal purchased from the State of New York, the company must support “real Bitcoin” in a ratio of 1: 1 for each unit purchased by its users. According to Pantera Capital, the number of PayPal users is 300 million. By comparison, Bitcoin has about 100 million users. The report says that if this trend continues, only PayPal will buy the weight of newly issued Bitcoins within a few weeks.
Currently, only eligible PayPal customers in the United States are allowed to use the crypto service, which includes Ethereum, Litecoin, and Bitcoin Cash. However, the company plans to expand its services to international clients next year. This may further increase the buyer pressure on BTC. Pantera Capital makes the following forecast:
“This is the history of Bitcoin right now. When other, larger financial institutions follow suit, the supply deficit will become even more unbalanced. The only way to balance supply and demand is for a higher price”.
There are fewer bitcoins as companies accumulate
The data speaks for itself: the growth of bitcoin was caused by companies that went into a state of” madness ” to purchase BTC. Data from Bitcointresuries shared by investor Clark Moody shows that companies that have bought bitcoin assets, such as Galaxy Digital Holdings and MicroStrategy, have now accumulated about $ 15 billion in them. This amounts to 842 229 BTC, or 4,54% of the total supply of coins.
Three Arrows Capital CEO su Zhu is relying on data from the BTC-based derivatives platform Deribit to set a new price target for the cryptocurrency at $ 36,000. Zhu said open interest in the platform is at an all-time high.