Aggressive Buying Pressure Amid Entry of PayPal and Cash App

Bitcoin’s supply is reducing at an alarming rate as the demand for the coin in the markets is breaking new records. The investment firm Pantera Capital says the price is making its direction upward after PayPal gave a green signal for the world’s leading digital currency.

PayPal Buys 70% of Supply

Pantera Capital reports that the price value of Bitcoin started increasing after PayPal made it clear to the users that it was going to offer crypto services to a user base of millions. The primary cryptocurrency gets a broad exposure of users as the user base of PayPal is three times of the currently active users of the top digital asset.  According to Pantera Capital’s 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.”

The report also claims that the Cash App of the payment giant Square also purchased nearly 40% of the newly minted BTC supply. As traditional payment giants are providing an easy way to access and buy crypto assets, traders and investors have become more interested in it than ever. At the time of the bull run in 2017, there were not easy methods to buy cryptocurrency. So, there are many things which happen in favor of digital assets in 2020. PayPal and Cash App represent the retail demand for the flagship cryptocurrency.

Besides retail interest, there is a rising trend of institutional clients towards the crypto space in 2020. Grayscale has now assets under management worth more than $13 billion which is the highest figure witnessed ever in the entire history of Grayscale. After the purchase of Bitcoin worth more than $400 million, the investment company is now thinking about buying more BTC options. The largest assets management firm BlackRock has also attracted towards Bitcoin as the chief investment officer of the company claims it could replace gold.

At press time, Bitcoin is exchanging hands at $18,340 after a decrease of 1.84% over the day.