Bitcoin (BTC) has made a stellar comeback from its March lows in 2020 and this performance is getting noticed by institutional investors. Recently Rick Rieder, BlackRock’s CIO of fixed income, said that Bitcoin could replace gold as it is “more functional than passing a bar of gold around.”
Comments like these are a positive sign as they demonstrate that the narrative of Bitcoin being increasingly viewed as digital gold even among traditional investors has been gaining wider acceptance.
A new report by crypto investment firm Pantera Capital attributes the recent uptick in Bitcoin’s price to PayPal’s new crypto service. According to Pantera, data shows that “PayPal is already buying almost 70% of the new supply of bitcoins” and Cash App the rest 30%, which has created a real supply shortage.
Crypto market data daily view. Source: Coin360
Bitcoin naysayers have long described the asset as too volatile but research by investment management firm Van Eck found that about 51%