Bitcoin Price
PayPal, Square, Others Crucial In Driving Bitcoin 70% Higher in a Month
Nick Chong | Nov 21, 2020 | 01:00
- According to Pantera Capital, one of the biggest funds in the crypto fund, the recent rally has been driven by the influx of retail investors buying Bitcoin.
- Per their projections, PayPal users alone may soon acquire more Bitcoin than there are being mined.
- Not only is retail interest in Bitcoin increasing, so is billionaire and celebrity interest in the cryptocurrency.
Bitcoin Rally Predicated on Increase in Retail Volume: Pantera Capital
Bitcoin has seen a strong rally over the past few weeks that has brought it as high as $19,000. The coin currently trades for $18,800 as bulls attempt to determine which direction this market will move next.
According to Pantera Capital, one of the biggest funds in the crypto fund, the recent rally has been driven by the influx of retail investors buying Bitcoin. The firm’s co-CIO Dan Morehead wrote on the matter:
“The bitcoin community is proud to have grown to 100 million users over twelve years. PayPal has 300 million active users. As we’ve argued — and will argue more fully in our December investor letter — this rally is much more sustainable than 2017. One of the main differences is the ease of investing in bitcoin now — via PayPal, Cash App, Robinhood, etc.”
As he mentions in the comment, the increase in Bitcoin buying activity by users of PayPal, Cash App, Robinhood, and other venues is likely driving buying pressure:
“When PayPal went live, volume started exploding. The increase in itBit volume implies that within four weeks of going live, PayPal is already buying almost 70% of the new supply of bitcoins. PayPal and Cash App are already buying more than 100% of all newly-issued bitcoins.”
Morehead went on to note how a simple projection of the volume on itBit, the exchange through which PayPal purchases BTC, suggests PayPal will soon represent more buying pressure than the number of coins minted each day.
Billionaires Are Buying Too
Not only is retail interest in Bitcoin increasing, so is billionaire and celebrity interest in the cryptocurrency.
Mexican billionaire ($13 billion net worth) Ricardo Salinas Pliego was recently revealed to have put 10% of his liquid investments in Bitcoin:
“Dan, I love your newsletter (to which I subscribe) Here some clarifications on my post: 10 % of “liquid portfolio” in BTC…not of my net worth! The other 90% is in precious metals miners. For me it’s no “stampede”, started with Grayscale at 800 dlls BTC in 2016. Ricardo S.”
This comes a few months after Paul Tudor Jones, a billionaire Wall Street money manager, also announced his investment in BTC:
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com PayPal, Square, Others Crucial In Driving Bitcoin 70% Higher in a Month
