PayPal has triggered a Bitcoin supply crunch after allowing its users to buy BTC for the first time, according to the CEO of crypto investment firm Pantera Capital.
In a new blog post, Dan Morehead says PayPal customers are already buying 70% of the new supply of BTC entering the market.
“PayPal’s crypto infrastructure provider is Paxos. Prior to PayPal’s integration of crypto, itBit, the Paxos-run exchange, was doing a fairly constant amount of trading volume – the white line in the chart below.
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 Bitcoin.”
Source: Pantera Capital
When you combine those figures with the fact that people are already buying BTC