There has been a major supply crunch with bitcoin lately, which is the main reason it has been going up.
When you combine a supply crunch with a sudden increase in demand and you get a price heading north.
As I mentioned briefly yesterday, there is likely a supply crunch coming from Chinese Miners not able to sell their bitcoin due to fiat on/off ramps being shut down by authorities:
How true that is exactly is tough to say because well it's tough to know what to believe when it comes to China. Half the things coming out are either half truths or outright misinformation.
That being said, the sudden drop in hash rate a few weeks back would add credibility to Chinese miners being squeezed.
Then you have instutions etc all buying up bitcoin right now on the open markets and the result is something like this:
What I mentioned above deals mostly with the supply side.
On the demand side we had a major development in the last couple weeks that is making all the difference in the world.
Based on data released from Pantera Capital, PayPal is buying up roughly 70% of all the newly created bitcoin each day...
Check it out:
As you can see, there was a tremendous volume surge in the past couple weeks as PayPal went live.
When you combine this with the purchases via Cash App and you have these two sources gobbling up more than 100% of all the newly created bitcoin each day.
Then don't forget what the Grayscale's of the world are doing as well on a daily basis...
Long story short, there is serious demand coming into bitcoin right now and it's coming from many different directions.
PayPal is likely just getting started as far as demand and retail isn't even in the space yet...
At least not compared to 2017:
If what I mentioned above is true and Chinese miners are being being squeezed, the price of bitcoin may go stupid high before the end of this year.
It was already going to go stupid high, but now it may happen even sooner than I expected.
Stay informed my friends.
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