Cryptocurrency and hedge fund investment firm Pantera Capital says new figures indicate that PayPal is now buying 100% of all new bitcoins entering the market.
In a recent report, Pantera CEO Dan Morehead tracks the amount of BTC being purchased at itBit, the cryptocurrency broker owned by Paxos that powers PayPal's Bitcoin ecosystem.
“In the past seven months, we have had two major changes – one in demand, the other in supply – both bullish. On the demand side, we had public companies like PayPal entering the market. This changes the demand curve to much higher. At the same time, the supply of newly issued Bitcoins was cut in half in May – as part of reducing Bitcoin emissions every four years. (…) When PayPal went live, the volume started to explode. The increase in the volume of itBit implies that within two months of going live, PayPal is already buying more than 100% of the new Bitcoin offer. ”
Implicit Bitcoin purchases from PayPal (via itBit volume). Source: Pantera Capital and DailyHodl.
Morehead also points to MassMutual's recent Bitcoin investment and MicroStrategy's increasing Bitcoin allocation as further signs of a BTC supply crisis.
Earlier this year, Pantera used Bitcoin's stock / flow ratio to predict that BTC will reach $ 115,000 in August next year.
Morehead says the recent Bitcoin price action was actually slower than anticipated. The company is now anticipating that Bitcoin will hit the meteoric price around October 2022.
See also: Tether prints $ 400 million in two weeks, will Bitcoin be affected?
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