Paypal dominates the Bitcoin (BTC) market with an estimated 70% of the company's newly produced bitcoin coins over the past four weeks due to high rocket demand!
The total purchase of the asset along with Square's Cash App led to over 100% of the new bitcoin being purchased by both firms.
Paypal in November launched crypto services in the United States (US) after announcing their decision to offer cryptocurrency services in late October. Starting 2021 the service will be expanded worldwide.
Following the launch, the Bicoin price jumped over $ 12,000 and remained bullish at a three-year high of $ 18,997 on November 20.
Paypal’s participation in the crypto industry has had a huge impact and if this momentum continues, it is not impossible if Paypal buys more new bitcoin within a few weeks.
The latest surge in Bitcoin is also seen to be more stable and consistent compared to 2017 due to increased institutional demand from entities such as Paypal, Cash App and Robinhood, making buying bitcoin easier.
So far about 21 firms including Microstrategy Inc and Galaxy Digital Holdings have a total of 32,352 BTC worth $ 14.42 billion.
As bitcoin supply becomes increasingly limited as more financial institutions turn to the crypto industry such as Paypal, the supply of such assets will become unbalanced. This will make the asset traded more expensive in order to control the balance between supply and demand.
