PayPal purchased 70% of all newly-mined BTC over the past month

PayPal purchased 70% of all newly-mined BTC over the past month
Written by:
Jinia Shawdagor
November 23, 2020
  • Pantera Capital believes that PayPal might soon be purchasing all newly-mined BTC.
  • The hedge fund manager claims institutional support will make BTC’s rally more sustainable.
  • PayPal and Square’s Cash App are currently buying more than 100% of all newly-mined BTC.

Payments giant PayPal bought up to 70% of all newly-mined BTC over the past month since it started offering crypto services on October 21 this year. 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. Reportedly, the fiat-to-crypto exchange was initially recording a relatively constant amount of trading volume. However, when PayPal announced that it would let its eligible US account holder purchase, hold, and sell crypto through itBit, the exchange’s trading volume started expanding rapidly.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Pantera Capital went on to note,

“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.”

Institutions are fueling BTC’s current rally

Per Pantera Capital, 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.

Pantera Capital went on to note that BTC’s current rally is more sustainable compared to the one in 2017. This is because, since 2017, a plethora of institutions, including PayPal, Cash App, and RobinHood, have joined the crypto sector, making it easy to purchase BTC. According to Pantera Capital, there was a lot of friction when it came to purchasing BTC, seeing as the process involved capturing a selfie with a passport and then waiting for days for activation.

However, the onboarding of players such as PayPal has simplified this process for millions of users across the globe.

Commenting on this bullish development, Pantera Capital said,

“Three hundred million people just got instant access to Bitcoin, Ethereum, and other cryptocurrencies.”

This news comes as Bitcoin’s (BTC) price continues making moonshots. At the time of writing, the coin is trading at £13,839.5. This figure denotes a 0.2% gain over the past 24 hours and a 13.66% rise over the past seven days. BTC remains dominant regarding market capitalization with a market cap of £256,429,793,526.6 and a trading volume of £32,531,657,505 over the past 24 hours.