Cryptocurrency investment firm Pantera Capital has said in a recent report that the shortage of the top-ranked digital currency is real and the online payment giant’s entry into the digital currency market is the actual cause behind this. The cryptocurrency hedge fund manager claims that PayPal has already accelerated the Bitcoin buying pressure in the cryptocurrency market.
Pantera Capital says that the demand for the digital currency offering of PayPal has increased incredibly over recent times. According to the firm’s estimation, out of the total newly-mined supply of the leading digital currency, the payment giant counts for 70 percent of it. This has occurred within the duration of the four weeks after the cryptocurrency offering of PayPal was launched officially.
Together both PayPal and the payment giant Square’s Cash App are having over 100 percent of the Bitcoin’s newly-minted supply as Pantera Capital claimed in the report:
“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.”
This shows that all of the newly-minted supply of the major cryptocurrency is being purchased by both Cash App and PayPal. Pantera further says that if other major financial institutions follow the lead of these payment giants the shortage in the supply of Bitcoin will become more disproportionate.
“When other, larger financial institutions follow their lead, the supply scarcity will become even more imbalanced. The only way supply and demand equilibrates is at a higher price.”
PayPal’s entrance into the world of cryptocurrencies has already influenced the price value of Bitcoin in a positive way as the dominant cryptocurrency has skyrocketed to $18,700. However, Pantera Capital believes that it will further impact the price value of BTC in the coming weeks helping the coin to retest its all-time high. Bitcoin’s all-time high value is not now far away.