Bitcoin price rises, thanks to a mystery trader!

In the recent past, the cryptocurrency industry nosedived, right at the beginning of 2018, which ironically was, weeks after Bitcoin reached an all-time high of around $19,500, as new regulations and security concerns triggered severe devaluation.

On Feb. 6, 2018, bitcoin was at $6,000. However, true to one speculator’s hunch, has now climbed back up over $10,000 – a gain of more than 60 percent.

This unknown trader made his purchase between Feb. 9 and 12, increasing his balance from 55,000 coins to over 96,000.

Going by a tweet, a bitcoin address bought almost $1 billion worth of bitcoin during a dip in its prices recently. The buyer first bought bitcoin worth $344 million between February 9th and February 12th, when its price traversed the range between $8,500 and $8,900. The buyer doubled down on bitcoin by purchasing 41,000 coins, just before its price hit $10,000.

The tweet will provide further ammunition to critics of the cryptocurrency. In the past, detractors have noted that despite bitcoin’s claims of being decentralized, its price is susceptible to being manipulated by “bitcoin whales,” or investors and traders who hold large stashes of the virtual currency.

Jeff Koyen, president of 360 Blockchain USA in his statements said,“In the meantime, the $400 million whale is fuel for the Telegram channels where traders lay out their conspiracy theories. However, I am willing to believe that, seeing bitcoin bottom around $6,000, Wall Street smelled blood and jumped back in.”

The price of bitcoin has increased more than 60% since trading under $6,000 on February 6, pushing back above $10,000, helped by signs of growing recognition of digital currencies from officials in Washington.

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.”

News of the purchase quickly spread on social media and chat forums, convincing other risk-takers that the cryptocurrency had hit its low and could only increase from there. Hence, leading to an increase in BTC prices.

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So, to conclude, the purchase comes as cryptocurrencies are making a comeback after a dreadful start to 2018. 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. However, the tide has turned.