A month after publishing a report alleging that PayPal and Square were buying every newly-mined bitcoin, the CEO of Pantera Capital, Dan Morehead, has come out to say that ‘Bitcoin shortage’ is the reason behind the recent price rally.
In an appearance on CNBC on Tuesday, Morehead claimed that institutions are buying bitcoin faster than miners can create it. And this has apparently caused a shortage that is causing the ‘prize to squeeze up.’ The CEO also added that the run-up of 2020 is quick different from the Bull Run of 2017. While the 2017 run-up was fuelled mainly by speculation, this time around large companies are putting their money where their mouth is and are buying bitcoin on a five to twenty-year time horizon.
As reported previously by BTC PEERS, several investment companies and financial behemoths have been buying large quantities of the digital gold. Citing a rising macroeconomic uncertainty as the driving force, some of these firms have turned to Bitcoin as the solution. Meanwhile, players like Grayscale and PayPal are buying bitcoin to provide crypto-asset exposure to their clients.