Buy low and sell high, this is something that you want to follow as an investor. But are you really sure that you are actually buying at a low when it comes to dealing with cryptocurrencies? Most likely, a good number of investors entered the market late. After seeing Bitcoin go up to almost $20,000 before 2017 ended, and seeing it crash to below $6,000, it seemed that the crypto market is definitely a gamble for high-risk investors.
An anonymous cryptocurrency investor decided that it is time to invest in some Bitcoin. It was reported that $344 million worth of bitcoins were purchased at an average price of $8,400 from February 9 to 12. The said account has ballooned from 55,000 BTC to 96,000 BTC in that short period of time.
Even an act of a single investor could have an impact on the entire crypto market. According to 360 Blockchain USA president, Jeff Koyen, he mentioned that “The $400 million whale is fuel for the telegram channels where traders lay out their conspiracy theories”.
After the South Korean government backpedaled from its initial plans to ban cryptocurrency exchanges for good, it seemed that experts are looking at the possibility that Bitcoin is back in its bullish ways. Since February 6, Bitcoin coming from under $6,000 has been able to increase by more than 60% and is now back above the $10,000 range.
Alex Sunnarborg, the Founding Partner of Tetras Capital mentioned that “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 US and Asia”.
He also mentioned that “I am willing to believe, that seeing bitcoin bottom around $6,000, Wall Street smelled blood and jumped back in”.
There are different countries that have been alarmed by the popularity of cryptocurrencies, especially of Bitcoin. In fact, South Korea almost banned crypto exchanges. On the other hand, China has banned foreign and local cryptocurrency exchanges and ICOs as well.
Rob Joyce, who works as White House cybersecurity coordinator and special assistant to Donald Trump, mentioned that the US is still looking at the possible pros and cons of cryptocurrencies right before they announce regulatory changes. He mentioned that “I think we’re still absolutely studying and understanding what the good ideas and bad ideas in that space are. So I don’t think it’s close.”.
He also mentioned that “We are worried. There are benefits to the bitcoin concept—digital cash, digital currencies. But at the same time, if you look at the way bitcoin works after there is a criminal act that takes place, you can’t rewind the clock and take back that currency”.
Given the fact that regulations remain as a grey area in most countries, whether the crypto market is going to go back to its bullish ways or not is really still a debate. It is true though that a $400 million investment on Bitcoin can definitely convince other investors to invest as well seeing a large sum of money thrown into the crypto market.
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