Paypal has recently acquired 70% of the entire new Bitcoin that was mined since this giant payments company began offering services of cryptocurrency about four weeks back.
Pantera Capital, the manager of hedge funds, has spoken to the recent blockchain letter of the month and revealed these details. So these are all coming from inside sources and there has been no official announcement as of yet. The cash app of Square and Paypal, together have decided to acquire over 100% of the entire freshly mined Bitcoin, as informed by the sources.
The Paxos exchange service of fiat-to-crypto called Itbit has been showing a massive demand for the crypto service to be offered by Paypal and has recently seen a record-breaking demand. This exchange has been conducting a fairly stabilized sum of trading amounts. Nonetheless, by the time Paypal went life, the volume began to explode as it was stated by the sources. The surged volume of Itbit is a clear indication of the buying of 70% of virgin BTC by Paypal as soon as they went live.
Towards the end of October, Paypal announced that their customers whose numbers are more than 300 million, will get access to purchase, hold as well as sell Bitcoin along with various virtual assets with the help of their Paypal user accounts. This allowance also opened gates for the users to buy anything offered by the 26 million traders registered on Paypal with the use of their BTC coins. Paypal has started their crypto services to customers in the US at the beginning of November while customers in the rest of the world will be able to access this service very soon.
With this announcement by Paypal, the prices of BTC increased over $12,000 and has shown a bullish trend as they recently hit their ATH of 3 years on 20th November by reaching $18,997.
It is observed that the current rally of BTC is very reliable owing to the demands of institutions like Paypal, Robinhood, and Cash App.
Institutional trading is pushing up the price of Bitcoin and giving sustainable hope to the future. Galaxy Holdings own $14.42 billion Bitcoin in their reserve. As a result, 832,351 BTC that is almost 4% of the entire BTC that is supplied for circulation is held by Galaxy.
Several of these purchases took place in the past couple of months which is reflected in the BTC rally and prices. Pantera Capital declared that high demand has led to a shortage of BTC in the market.