Pantera Capital says the recent bullrun above $18,000 is due to the involvement of retail traders besides a surge in the numbers of institutional investors. After PayPal announce to accept cryptocurrency, the retail buying pressure has increased many folds.
Over some past weeks, the top digital asset has expressed an outstanding performance which pushes the price value close to $19,000. The value is currently standing at $18,800 which is a very decisive level as crypto members are unaware of the next move as it may also go downward.
Active Retail Investors
Pantera Capital claims the latest price rally is dedicated to the interest of retail players who created an overwhelming buying pressure in the cryptocurrency markets. Dan Morehead from the Pantera Capital says Bitcoin has achieved a user base of 100 million in a period of twelve years. The newly joined PayPal has a user base of 300 million active customers. With the entry of traditional entities having a large community of customers, crypto-inspired investors get an easy way to access and buy cryptocurrency.
He explains that traditional financial companies, such as PayPal, Robinhood, and Cash App, have created an easy path for people who are interested in purchasing Bitcoin.
Purchase of New BTC Supply
As PayPal is buying BTC from itBit, the volume of itBit has increased to a large extent. The payment giant is purchasing 70% of the newly minted supply of the world’s top digital asset. Morehead said:
“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. PayPal and Cash App are already buying more than 100% of all newly-issued bitcoins.”
According to Morehead, PayPal’s buying pressure will increase more in the future and the demand will surpass the daily new-minted supply.
Billionaires are also catching the bus of cryptocurrency and are increasing their investment range in the industry. Billionaire Ricardo Salinas Pliego from Mexico has dedicated “10%of his liquid investments in Bitcoin.”