According to Pantera Capital, one of the largest funds in the crypto space, the recent rally was driven by the influx of retail investors buying Bitcoin. According to their forecasts, PayPal users alone could soon buy more Bitcoin than is being phased out.
Not only is retail investor interest in Bitcoin growing, but also the interest of billionaires and celebrities in the crypto-currency.
Bitcoin Rally is driven by retail investors: Pantera Capital
Bitcoin has experienced a strong rally in recent weeks, which has taken the coin to almost $19,000. BTC is currently traded for $18,640 as the bulls try to determine which direction the market will move next.
According to Pantera Capital, one of the largest funds in the crypto space, the recent rally was driven by the influx of small investors buying Bitcoin. 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 by users of PayPal, Cash App, Robinhood and other venues is likely to drive buying pressure:
„When PayPal went live, the volume began to explode. The increase in itBit volume implies that PayPal is already buying nearly 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 volume to itBit (the exchange through which PayPal buys BTC) suggests that PayPal will soon represent more buying pressure than the number of coins minted daily.
Billionaires also buy BTC
Not only the interest of small investors in Bitcoin is growing, but also the interest of billionaires and celebrities.
Mexican billionaire ($13 billion net worth) Ricardo Salinas Pliego recently revealed that he has invested 10% of his liquid investments in Bitcoin:
„Dan, I love your newsletter (which I subscribe to). Here are some clarifications about my contribution: 10% of the „liquid portfolio“ in BTC…not my net assets!“.
A few months earlier, Paul Tudor Jones, a billionaire and Wall Street money manager, had also announced his investment in BTC:
„One thing that has sparked my interest in this list of assets, and which could one day be brought to the fore by the GMI, is Bitcoin. To be honest, I am neither a moneybag nor a cryptofanatic. I’m not a millennial investing in crypto-currency, which is very popular in 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 achieve this is to ensure that I invest in the instruments that are the first to respond to the massive increase in global money. And since Bitcoin has delivered positive returns in recent periods, a deeper immersion in this instrument was justified“.
It is precisely this influx of capital that will drive the market dramatically upwards in the coming months.