The highest high roller in Las Vegas is putting chump change on the table compared with a wager from latest Bitcoin whale to surface. A bitcoin buyer with address 3Cbq7aT1tY8kMxWLbitaG7yT6bPbKChq64 nearly doubled down on their holdings, adding 41,000 bitcoins to an existing stash of 55,000 bitcoins that had been bought in December 2017.
The anonymous buyer took advantage of the recent cryptocrash where industry leader Bitcoin dipped below $6,000 per coin in early February. The mystery buyer spent $344,000,000 USD at a blended bitcoin cost basis of $8,400 from February 9 - 12. On February 9th the buyer bought 46,000 bitcoins, and then added another 9,000 bitcoins on February 12th, for a new total holdings of 96,000 bitcoins worth around $1 billion at today’s price.
The buyer impacted the cryptocurrency industry at large. Telegram channels and social media were abuzz with theories about who the buyer might be. Most guesses were that the buyer was either a corporate investor adding bitcoins to its larger holdings, a deep pocketed and highly risk tolerant speculator, or maybe even the Winklevoss twins. It was later determine that the buyer was not the twins, but in the meantime news quickly spread on social media and chat forums, convincing other risk-takers that the volatile bitcoin had settled down into a new steady low.
The top cryptocurrencies slumped to their lowest levels in months in early February. But the price dump was not the cryptocurrency bubble pop that many wary analysts have predicted. With the recent surge in valuations, a total cryptocurrency market capitalization of $1 trillion again does not seem out of reach.
Indeed, bitcoin has since surged above $10,000, helped by signs from officials in Washington and Asia of a growing recognition of the legitimacy of digital currencies. Cryptocurrency markets tend to noticeably surge anytime there is a significant improvement in regulatory clarity.
The anonymous entity that bought $344 million in bitcoins from February 9 – 12 added an unquantifiable amount of fuel to the rebound by proving that experienced traders are watching the market and are set to leap in when they sense that a cryptoasset’s value has bottomed out.
By: BGN Editorial Staff