Payments giant PayPal bought up to 70% of all newly-mined Bitcoin over the past month since it started offering crypto services last month. Pantera Capital, a hedge fund manager, unveiled this news in its most-recent monthly blockchain letter, adding that combined with Square’s Cash App, the two firms are purchasing more than 100% of all newly-issued BTC. According to the letter, the demand for PayPal’s crypto service, which runs on itBit, Paxos’ fiat-to-crypto exchange, has surged significantly.
itBit’s trading volume increases after PayPal started offering crypto services.
Reportedly, the fiat-to-crypto exchange itBit was initially recording a relatively constant amount of trading volume. However, since PayPal announced that it would let its eligible US account holder purchase, hold, and sell crypto through itBit, the fiat-to-crypto exchange’s trading volume started expanding rapidly. The letter noted, “when PayPal went live, volume started exploding. The increase in itBit volume implies that within a month of going live, PayPal is already buying almost 70% of the new supply of bitcoins.” PayPal’s decision to enter the crypto sector is already showing a huge impact.
Bitcoin’s current rally is more sustainable compared to the one in 2017.
Pantera Capital noted that payment giant PayPal’s decision to dip its toes in the crypto sector is already showing a huge impact. The hedge fund manager believes that if the firm’s demand for BTC persists, it might soon be purchasing more than all of the newly-issued BTC within a few weeks. At the time of writing, the price of bitcoin is changing hands at just above $18,600. The current bitcoin rally is the highest since its all-time high that it achieved in 2017. However, Pantera Capital noted that Bitcoin’s current rally is more sustainable than the one in 2017.