According to Pantera Capital, PayPal has been consuming 70 percent of its new BTC supply since it started offering cryptocurrency services.
PayPal, which has recently launched its cryptocurrency trading service, is absorbing 70 percent of the newly launched Bitcoin supply on its own.
In the report published yesterday by crypto investment company Pantera Capital, it was stated that the volumes of PayPal’s itBit exchange used for crypto money transactions have exploded. “The increase in itBit volume indicates that almost 70 percent of the new Bitcoins released within four weeks of launching the cryptocurrency service at PayPal were bought by PayPal,” the company said. says.
This situation is illustrated by the graphic below. The white line on the graph shows the transaction volume of itBit. This white line is starting to move up dramatically in late October.
Due to the requirements of PayPal’s BitLicense license from New York, the company has to keep 1 to 1 real Bitcoin for every BTC its users buy.
PayPal’s cryptocurrency services are currently only available in the US. The company plans to expand this to more countries next year. It is emphasized that this may increase the buying pressure on Bitcoin.
According to Pantera Capital, “If growth continues, PayPal will start buying more of all newly issued BTC in a matter of weeks alone.”
The company notes that based on corporate demand, the current rally is showing signs of being more sustainable than in 2017, hence the leading cryptocurrency could go beyond the all-time high of $ 20,000.
Pantera also found that PayPal purchases 70 percent and Square 40 percent, more than the total amount of BTC generated. Square had purchased $ 50 million worth of Bitcoin as a reserve asset in recent months. Apart from this, the company also buys to meet the demands of its application, Cash App, which allows individual investors to buy and sell Bitcoin. The Cash App is estimated to receive about 40 percent of all newly issued BTC.