The demand exceeding supply is “THE story in Bitcoin right now” as BTC is already knocking on the door of its all-time high of $ 20,000. Dan Morehead, CEO and Co-Founder of the major crypto investment firm Panther Capitalstressed.
PayPalThe crypto push is “already having a huge impact,” Morehead wrote In his letter from November on Friday, he pointed to the 300 million PayPal users who have just been given easy access to Bitcoin. This development follows the pioneer Jack Dorsey square‘s Cash appwho has been in the bitcoin game for more than two years and whose bitcoin sales continue to grow from quarter to quarter. The Cash app had Bitcoin sales of $ 1.63 billion in the third quarter of this year.
Morehead pointed out that between PayPal and Cash App, “more than 100% of all newly issued bitcoins” are already being purchased. If PayPal continues to buy at its current pace, it will “buy more than all of the newly issued bitcoin in a matter of weeks,” noted Morehead, adding that this is where the “Finite Supply, Inelasticity” part comes in: at a higher price. This dynamic is paving the way for the bitcoin shortage and driving the price of bitcoin near new highs.
Before the halving, @CashApp bought 20% of all newly issued BTC. Now it’s ~ 40%
Additionally, PayPal and Square aren’t the only ones buying bitcoins. As reported on Friday, managing director of a large crypto asset management company GrayscaleMichael Sonnenshein said his team “raised over $ 188 million [around BTC 10,000] in Grayscale Bitcoin Trust yesterday alone. “
Per Bytetree BTC miners generated data in the past seven days of BTC 6,825. As reported, there are currently 3.4 million Bitcoin available for buyers, while BTC trading volume on exchanges fell by 41% in November.
Panteras Morehead also sees a world where other “bigger financial institutions” will catch FOMO (fear of missing out), causing “supply scarcity” to become “even more unbalanced”.
“The only way to balance supply and demand is through a higher price,” Morehead said, noting that “this rally is much more sustainable.”
He also advocated further expansion of the US Federal ReserveTaking stock of the US election result with a divided government. By setting the money printer to “brrr”, policymakers increase the value of assets “which cannot be reduced in quantity,” which benefits the storage of assets of value such as bitcoin and gold.
At pixel time (05:32 UTC), BTC is trading at $ 18,626, falling from the $ 18,946 hit earlier today. The price is still up almost 3% in a day and 15% in a week. It increased by 46% in one month and 143% in one year.
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