One trader has taken a huge bet on Bitcoin, buying close to $400 million of the premier digital currency, bitcoin. This comes as the price has bullishly pushed and stayed above $10,000. The price of bitcoin BTCUSD, +7.89% has increased more than 60% since trading under $6,000 on February 6, helped by signs of growing recognition of digital currencies from officials in Washington.
After the big drop of early 2018, most cryptocurrencies are surging higher in value. Major digital currencies lost as much as 50% to start the year as growing regulation and security fears crippled the market, seeing traders bail on their positions.
Alex Sunnarborg, Founding Partner of Tetras Capital said:
“Not sure who that big buyer was but many have bought this dip and have added since the rebound and additional regulatory clarity in the U.S. and Asia,”
The transaction, which was blasted all over social media and online chat forums emboldened bulls who had argued that $6,000 was a bottom.
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 today’s price ($9,400).
— Andy Hoffman (#HODLBTC) (@Andy_Hoffman_CG) February 15, 2018
The unknown trader with the bitcoin address 3Cbq7aT1tY8kMxWLbitaG7yT6bPbKChq64 purchased the coins between Feb. 9 and Feb. 12, taking his bitcoin balance from 55,000 coins to more than 96,000.
Jeff Koyen, president of 360 Blockchain USA said:
“However, I am willing to believe that, seeing bitcoin bottom around $6,000, Wall Street smelled blood and jumped back in,”
With bitcoin back above $10,000, the owner of the address is closing is on the crypto billionaires club.