PayPal’s current leap into the crypto market helps to drive the present bitcoin (BTC) rally, in keeping with Pantera, a outstanding cryptocurrency and blockchain funding agency.In an investor letter revealed Nov. 20, the enterprise agency in contrast the continuing bull market to the final time BTC rose above $18,000, three years in the past. “Previously the friction to buy bitcoin was pretty onerous,” the letter notes, contrasting that issue with how e-commerce big PayPal has now made it straightforward for thousands and thousands of customers to develop into potential bitcoin, ether, bitcoin cash and litecoin patrons. Certainly, all eligible PayPal account holders within the U.S. can now purchase, maintain and promote these cryptocurrencies – earlier than the funds agency anticipated, as a consequence of steep buyer curiosity. Moreover, the agency just lately upped its weekly crypto buy limits to $20,000 from an preliminary $10,000. “BOOM! The results are already apparent,” Dan Pantera, chief government and founding father of the eponymous fund, wrote within the November letter. “When PayPal went live, volume started exploding.”Panterra claims that PayPal is already shopping for virtually 70% of the brand new provide of bitcoins. Along with Sq.’s Cash App routine bitcoin shopping for, greater than 100% of all newly minted bitcoins is accounted for, Panterra alleges.The Bitcoin community points new BTC on a set and predetermined schedule. Solely 6.25 new BTCs are mined each 10 minutes, following this 12 months’s “halving,” an quantity that can proceed to lower each 4 years till all 21 million BTC enter circulation.Panterra’s thesis facilities round a supply-side understanding of the bitcoin market. The thought is that as the availability of BTC decreases, as a consequence of decrease mining rewards, the demand naturally will increase – resulting in an appreciation in price. “When other, larger financial institutions follow [PayPal’s] lead, the supply scarcity will become even more imbalanced. The only way supply and demand equilibrates is at a higher price,” Panterra wrote.