Indian cash app PayPal and Jack Dorsey’s Square’s Cash App are reportedly behind the Bitcoin record rally this year, as the duo cash apps have purchased 100 percent of newly mined bitcoins.

“When PayPal went live, volume started exploding. The increase in itBit volume implies that within four weeks of going live, PayPal is already buying almost 70% of the new supply of bitcoins,” crypto hedge fund Pantera Capital indicated in the report.

"When other, larger financial institutions follow their lead, the supply scarcity will become even more imbalanced," the report said. "The only way supply and demand equilibrates is at a higher price."

As per details, PayPal has already bought 70 percent of newly issued bitcoin, while Square is estimated to be buying about 40pc.

However, as per the Pantera Capital report, “this rally is much more sustainable than [in] 2017. One of the main differences is the ease of investing in bitcoin now — via PayPal, Cash App, Robinhood, etc.”

The report said that if PayPal's growth persists, it would be buying more than the new coin supply issued recently.

Since the beginning of the year, Bitcoin has gained 155 percent, while Etereum has risen 330pc, as compared to the S&P 500 that has risen by only 10.11pc on a year-to-date basis.