Due to the plunge in cryptocurrency price this week, a digital currency trader took advantage of the situation and managed to purchase $400 million worth of bitcoin. The anonymous purchase was done anytime from February 9 to February 12 via an account connected with the bitcoin address “3Cbq7aT1tY8kMxWLbitaG7yT6bPbKChq64”. His or her bitcoin balance therefore jumped from a mere 55,000 coins to as much as 96,000. At the current price, the anonymous trader’s purchase essentially amounts to more than US$1 million. It was financial analyst, precious metals commentator and bitcoin enthusiast Andy Hoffman who posted on Twitter the details of the trader’s purchase.
According to the founding partner of Tetras Capital, Alex Sunnarborg, the purchase seemed to have been prompted by the intent to further regulate cryptocurrency trading in the US and Asia. He declared, “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.”
Bitcoin’s price increased to 60% since it traded below $6,000 thereby thanks to acknowledgment from Washington of possible regulations set to be imposed on cryptocurrencies. The anonymous trader’s purchase shows his or her optimism of cryptocurrency’s future value. However, the current price of bitcoin has yet to regain the high it experienced back in 2017 when it was valued at $20,000 each coin. Jeff Koyen, the president of 360 Blockchain USA, believes that the anonymous purchase will have a positive effect on the entire industry of digital currency. He advised, “The $400 million whale is fuel for the Telegram channels where traders lay out their conspiracy theories.” Koyen added, “However, I am willing to believe that, seeing bitcoin bottom around $6,000, Wall Street smelled blood and jumped back in.” Though no one has definite information on where cryptocurrency’s price is set to go, the anonymous trader could find him or herself a soon-to-be cryptocurrency billionaire if the industry regains a solid foothold of the market.