An anonymous cryptocurrency trader just purchased a whopping $400 million USD in bitcoin. It’s a sign that serious and experienced traders are watching the market, and are prepared to leap in when they sense an undervalued asset rather than turn their backs.
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Going Down, Going Up
Cryptocurrencies are starting to make a solid comeback since their respective falls last January. At press time, bitcoin is trading for $10,700 (up from about $8,400 last week), and has broken $11K a couple of times. Whoever the purchaser is, he (or she) clearly took advantage of bitcoin’s low price and has already made a vast bundle.
“I’m not sure who that big buyer was,” said Alex Sunnarborg, founding partner of Tetras Capital. “But many have bought this dip and have added since the rebound and additional regulatory clarity in the U.S. and Asia.”
How Many Dollars Earned?
The identity of the bitcoin whale has proven virtually impossible to uncover, though the transaction occurred through the bitcoin address 3Cbq7aT1tY8kMxWLbitaG7yT6bPbKChq64. Crypto-content mogul Andy Hoffman gawked at the person’s gains thus far on Twitter, posting:
“Bitcoin address 3Cbq7aT1tY8kMxWLbitaG7yT6bPbKChq64 purchased $344 million worth at an average of $8,400 from 2/09/18 through 02/12/18 – then, doubled down adding nearly 41,000 coins for a new total of 96,000 coins worth around $900,000,000 at todays’ price ($9,400).”
Since the time of the post, bitcoin has risen by approximately $1,600, suggesting that the person’s gains are now considerably higher. Whoever they are, the secret trader is likely on the road to becoming a crypto-billionaire granted bitcoin continues its current spike.
What Could Go Wrong?
Jeff Koyen, president of 360 Blockchain USA, believes the investor is someone with a strong history in finance – potentially a long-time stock trader or Wall Street banker who’s smart enough to recognize opportunity when it comes knocking.
“I am willing to believe that, seeing bitcoin bottom around $6,000, Wall Street smelled blood and jumped back in,” he explained.
The investor is probably lounging by the pool right about now and enjoying his/her newfound earnings, but some believe actions like these tend to have negative repercussions on the cryptocurrency market. In offering his reasoning for who could be behind the transaction, Koyen further stated that big-time purchases like these tend to fuel the wrong fires.
“The $400 million whale is fuel for the Telegram channels where traders lay out their conspiracy theories,” he mentioned in a recent interview.
How Could Telegram Impact the Bitcoin Price?
Telegram’s recent ICO has been labeled, by some sources, as “fraud amongst fraud,” as Telegram is built on a platform without a valid business model – one that’s not designed to make any money.
Expenses are typically covered by the company’s initial founders Pavel and Nikolai Durov, and thus the ICO is labeled merely as a means of garnering funds to cover Telegram’s growing bills.
Telegram’s FAQ page claims that should the business ever run out of money, executives would “introduce non-essential paid options to support the infrastructure and finance developer salaries.”
Who is the mysterious bitcoin buyer? Post your comments below.
Images via Pixabay, Telegram