Square and Grayscale purchased $2.3 billion worth of Bitcoin in the third quarter of 2020

The Bitcoin (BTC) share price has risen sharply in recent months. At the time of writing, the price of 1 BTC is around $15,300. The demand for BTC is unprecedentedly high among a number of large parties.

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Billions of bitcoin
US companies Square and Grayscale bought BTC for $2.3 billion in the third quarter of 2020.

By way of comparison, in the same period Crypto Nation Pro of time, miners earned around $1 billion in bitcoin. This means that much more bitcoin was purchased by these two parties alone than new BTC became available.

That does not mean, by the way, that miners sell all that bitcoin. In addition to miners, there is, of course, a global market with potential sellers.
IN 2020-Q3, #BITCOIN MINERS BROUGHT IN JUST UNDER $1 BILLION USD. THAT’S NEW BTC + FEES. SQUARE AND GRAYSCALE ALONE TOOK IN $2.3 BILLION USD.
Square bought 4,709 bitcoin as a saver. In addition, with Cash App, the tech company has a popular trading app in its hands. Via Cash App, Square sells hundreds of million of bitcoin per month.

Grayscale buys bitcoin for their bitcoin fund. Investors can buy a share in the Grayscale Bitcoin Fund. With such a share you do not have to buy bitcoin yourself, but you can take advantage of any price increases. Grayscale recently bought BTC for $300 million within 24 hours.

Grayscale and Square are just two prominent players in the world of bitcoin. There are also millions of retail investors and other companies who also like to buy bitcoin.

If the demand remains the same, the question is when the liquidity on the sales side will dry up. Each time bitcoin goes from stock exchanges to a different address, which indicates a trend in which bitcoiners do not want to sell so quickly anymore.

And then there are also parties that are eager to offer bitcoin on a large scale. The most eye-catching name is PayPal. They are also going to facilitate the trade in bitcoin. Important note: with the Cash App, for example, you buy bitcoin which you can send to your own address. This is not possible with PayPal.

The bitcoin that PayPal buys remains in the company’s ecosystem. The logical consequence of this is that this BTC does not quickly come onto the market. In short: there will be even less bitcoin on the market to sell.