The crypto investment firm and hedge fund Pantera Capital says new numbers indicate PayPal is now buying 100% of all new Bitcoin entering the market.
In a new market report, Pantera CEO Dan Morehead tracks the amount of BTC being purchased on itBit, the Paxos-owned crypto exchange powering PayPal’s Bitcoin ecosystem.
“In the last seven months, we’ve had two huge shifts – one in demand, one in supply – both upwards. On the demand side, we’ve had public companies like PayPal enter the market.
That shifts the demand curve much higher. At the same time, the supply of newly-issued Bitcoin was cut in half in May – as part of the every-four years halving of Bitcoin issuance. Fewer bitcoin are available…
When PayPal went live, volume started exploding. The increase in itBit volume implies that within two months of going live, PayPal is already buying more than 100% of the new supply of Bitcoins.”
Morehead also points to MassMutual’s recent Bitcoin investment and MicroStrategy’s ever-increasing Bitcoin allocation as further signs of a BTC supply crunch.
Early this year, Pantera used Bitcoin’s stock-to-flow ratio to predict BTC will hit $115,000 by August of next year.
Morehead says Bitcoin’s recent price action has actually moved slower than predicted. The firm is now anticipating Bitcoin will reach the meteoric price point around October of 2021.
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