PayPal’s entry into the cryptocurrency market could have a dramatic impact on the price of Bitcoin (BTC).
In one report recently released, the cryptocurrency investment firm, Pantera Capital says the lack of Bitcoin is at the center of the recent price spike and that most of the newly mined BTC is being collected by PayPal.
The new cryptocurrency service from PayPal “It’s already having a big impact,” Pantera says and adds that The online payment platform records around 70% of all new BTC that is put into circulation.
Quoting dates from ItBitPantera says:
“When the PayPal service went online, the volume started to explode. The increased volume of itBit means that PayPal is already buying nearly 70% of the new Bitcoin offering within four weeks of launch.”
According to Pantera, this is what the data suggests PayPal and Cash App together buy all newly issued Bitcoin.
Bitcoin’s monetary policy is programmed to be deflationary over time. With a large-scale introduction, this leads to increased purchasing power and supply bottlenecks. Pantera claims it is the latter Contribution to the parabolic surge of BTC.
PayPal launched its cryptocurrency trading services in the US earlier this month. Allow your customers Trade up to USD 20,000 per week. The The service will be available worldwide in early 2021.
The online payment merchant has 300 million active usersThis makes your foray into digital currency an important step towards its adoption.
Pantera says it is much easier to buy Bitcoin now than it was in the last bull market in 2017. In addition to PayPal, platforms for buying Bitcoin and other retail digital currencies now include Cash App and Robinhood.
Wider adoption means the digital currency is more likely to maintain a higher price level. While Bitcoin is still very volatile, it achieved an unusually long period of stability before being catapulted to higher levels in the past two months.