The sky’s the limit — that’s what Bitcoin (BTC) enthusiasts want to desperately believe anyway. As the cryptocurrency market has finally broken out of its bear market shell, rallying by over 100% since the start of 2018, many are sure that “crypto winter” is over and the next rally is on. And while expectations for the next bull run have varied, a majority are coming to the conclusion that the next market cycle will be more intense than any before it. Here’s why.
Misir Mahmudov, the analyst brother(?) of Goldman Sachs employee turned cryptocurrency diehard/fund manager Murad Mahmudov, noted that Square’s Cash App has become the #1 Finance app in the U.S. Apple App Store. While this doesn’t seem relevant, Square is a relatively large Bitcoin vendor. In fact, according to the Q1 2019 results that were published in late-April, Square secured $65.5 million in Bitcoin revenues, implying that $65.5 million worth of BTC was purchased. Assuming Q1’s average Bitcoin price of around $3,790 (CoinMetrics & The Block), Square sold an approximated 17,300 BTC during that period — Cash App’s fees and spreads not taken into account. During that same time frame, 162,000 BTC was mined, assuming that the Bitcoin network keeps to its standard emission rate of 1,800 BTC each day. This implies that Square’s users absorbed 11% of all BTC mined through their purchases.