Bitcoin shortage: PayPal and Square buy new BTC offer empty
While the Bitcoin exchange rate is gradually jumping to USD 20,000, institutional investors continue to tighten the BTC supply.
With a daily plus of 1.7 percent, the Bitcoin price is gently heading towards an all-time high. Profit-taking in yesterday’s trading has pushed the crypto-currency below the 18,000 US dollar mark once again. Since then, however, the largest crypto currency Immediate Bitcoin has revived and in the night to Monday missed the next thousand mark by a hair’s breadth.
Bitcoin price in the weekly chart
At the time of going to press, the Bitcoin exchange rate is quoted at 18,545 US dollars, thus defending an impressive cushion of 16 per cent over the week. The fact that the Bitcoin rally is repeatedly faltering on its way to an all-time high is not surprising in view of the rapid price gains. After all, many investors are securing their returns and bringing the Bitcoin sheep to dry land. But postponed is not cancelled. Not least the big fish in the crypto-pond are responsible for this.
PayPal and Square are running short on Bitcoin
It is no longer a secret that institutional investors will take over ever larger BTC market shares in 2020. The Nasdaq-listed software company Microstrategy, with a Bitcoin reserve of more than 425 million US dollars, and asset manager Grayscale, whose Bitcoin Trust has grown to over 500,000 Bitcoin and thus to around 2.7 to 3.3 percent of the amount in circulation, have proven to be particularly busy on the BTC tour.
There is no doubt that the purchasing policy has initiated a turnaround and opened up the „niche“ Bitcoin ecosystem to the select circle of institutional investors. But the course for global mass adaptation has been set by the payment service providers PayPal and Square.
With Square’s announcement of a US$50 million BTC investment at the beginning of October, the Bitcoin share price started to move after weeks of consolidation and, spurred on by PayPal’s announced Bitcoin integration, finally took the US$12,000 mark, which had been fought over for months, by storm.
As hedge fund Panteracapital has now announced, Square and PayPal have since become the largest buyers of newly mined Bitcoin. Square now accounts for around 40 percent of the offer, while PayPal has already purchased 70 percent of the new BTC supply within the first four weeks after the integration of Bitcoin.