According to Pantera Capital, one of the largest funds in the crypto space, the recent rally was fueled by the influx of retail investors buying Bitcoin. According to their forecasts, PayPal users alone could soon acquire more Bitcoin than is being mined.
Not only is retail investor interest in Bitcoin growing, but billionaires and celebrities are also becoming interested in the cryptocurrency.
Bitcoin rally is being driven by retail investors: Pantera Capital
Bitcoin has seen a strong rally in the past few weeks, bringing the coin up to nearly $ 19,000. BTC is currently trading at $ 18,640 as the bulls attempt to determine which direction the market will head next.
According to Pantera Capital, one of the largest funds in the crypto space, the recent rally was fueled by the influx of retail investors buying Bitcoin Evolution software. Dan Morehead, the company’s Co-CIO, on the subject:
“The Bitcoin community is proud to have grown to 100 million users in twelve years. PayPal has 300 million active users. As we have argued – and will argue in more detail in our December investor letter – this rally is much more sustainable than 2017. One of the main differences is the ease of investing in Bitcoin now – via PayPal, Cash App, Robinhood, etc. “
As he mentions in the commentary, the increase in bitcoin Buying Activity drives by users of PayPal, Cash app, Robin Hood and other venues likely the buying pressure to:
“When PayPal went live, the volume started to explode. The increase in itBit volume implies that PayPal is already buying almost 70% of the new Bitcoin offering within four weeks of its launch. PayPal and Cash App already buy more than 100% of all newly issued Bitcoins. “
Morehead explains how a simple extrapolation of the volume to itBit (the exchange through which PayPal buys BTC) suggests that PayPal will soon be more buying pressure than the number of coins minted daily.
Billionaires are also buying BTC
Not only is retail investor interest in Bitcoin growing, so is interest from billionaires and celebrities.
Mexican billionaire ($ 13 billion net worth) Ricardo Salinas Pliego recently revealed that he had 10% of his liquid investments in Bitcoin :
“Dan, I love your newsletter (which I subscribe to). Here are some clarifications to my contribution: 10% of the „liquid portfolio“ in BTC … not of my net worth! “
A few months earlier, Paul Tudor Jones, a billionaire and Wall Street money manager, had also announced his investment in BTC:
“One thing that got my interest in this list of assets, and that could one day be brought to the fore by the GMI, is Bitcoin. To be honest, I am neither a moneybag nor a crypto fanatic. I’m not a millennial investing in cryptocurrency, which is very popular with this generation, but a baby boomer who wants to take advantage of the opportunities that arise while protecting my capital in an ever-changing environment. One way to accomplish this is to make sure I invest in the instruments that will be the first to respond to the massive increase in global money. And since Bitcoin has had positive returns in recent periods, a deeper dive into this instrument was warranted. „