In February 2018, an unknown cryptocurrency enthusiast took advantage of a sudden drop in bitcoin prices by purchasing $400 million in bitcoin.
Cryptocurrencies had a rocky start to 2018. Many digital currencies were riding a wave of price increase at the start of 2018, and the industry’s market capitalization had grown to the point where a $1 trillion value didn’t seem outlandish. Then, in early 2018, prices plummeted, and several of the top 20 cryptocurrencies plummeted significantly.
While the price drop did not result in the cryptocurrency bubble popping expected by many experts, it did mean that leading cryptocurrencies, including market leader bitcoin, plunged to their lowest levels in months.
According to Market Watch, bitcoin fell below $6,000 per coin in early February 2018, but the price has since climbed significantly. In fact, it increased by more than 60% in the first two weeks of February 2018, ultimately breaking beyond $10,000. (For more, see Bitcoin Price Tops $10,000 in Cryptocurrency Rally.)
Who Is The Bitcoin Whale?
According to the unnamed cryptocurrency trader who made a significant investment in the currency, the rising trend will continue. Nonetheless, the price of bitcoin remains considerably below its all-time high of slightly under $20,000 per coin, which was reached late in 2017.
That was the trader who made the incredible bet? For the time being, determining his or her identity has proven difficult, if not impossible. “I’m not sure who that major buyer was, but many have purchased this drop and have contributed since the recovery and further regulatory clarity in the United States and Asia,” Tetras Capital founding partner Alex Sunnarborg said.
The transaction took place between February 9 and February 12, 2018, and was made to an account connected with the bitcoin address 3Cbq7aT1tY8kMxWLbitaG7yT6bPbKChq64. That account’s bitcoin balance has risen from 55,000 BTC to more than 96,000 BTC.
The activities of a single anonymous trader may have ramifications for the Bitcoin market as a whole. “The $400 million whale fuels the Telegram channels where traders lay out their conspiracy beliefs,” 360 Blockchain USA president Jeff Koyen said.
Cryptocurrency bulls have started to dispute over the direction of the world’s most valuable digital currency’s price. If bitcoin’s value continues to rise, the anonymous buyer may soon join the ranks of the cryptobillionaires.
Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is very dangerous and speculative, and this article is not a suggestion byInvestopedia or the author to do so. Because every person’s circumstance is different, a knowledgeable specialist should always be contacted before making any financial choices. Investopedia makes no guarantees or warranties about the accuracy or timeliness of the information provided on this site. The author owns cryptocurrencies as of the day this post was published.
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