The price of bitcoin, the number one ranked cryptocurrency in the world, rose above $11,500 on its current price resurrection after a turbulent start to the year. The catalyst of this recent revival is being attributed to a series of high-value bitcoin purchases that have totaled about $344 million.
The identity of this mystery purchaser is unknown but said buyer aggressively bought bitcoin starting from February 9 to February 12, 2018. It is believed that the sheer magnitude of these purchases has been enough to increase the demand for bitcoin thus leading to the recent price increase.
The Bulls Strengthen their Position
Bitcoin and the majority of the cryptocurrency market have been experiencing a difficult start to the year. After a stellar 2017 which saw many of the top ten cryptocurrencies experience massive price gains averaging nearly 1,000 percent, prices have declined significantly in 2018.
By the early weeks of December 2017, bitcoin was fast approaching the $20,000 mark until it began declining steadily before plunging below $6,000 early in February 2018. The panic caused by the sharp price drop caused a massive sell-off of the pioneer cryptocurrency.
The recent mystery purchase of $344 million worth of bitcoin, however, seems to portray a growing trend of bullish consolidation in the bitcoin market as well as the cryptocurrency market in general. Fear of strict anti-cryptocurrency regulations from many countries was responsible for the massive sell-off earlier in the year, but the bulls seem to be strengthening their position, and the price of bitcoin continues to grow steadily.
The increase is particularly profound when put in the context of the fact that it occurred same time as the Chinese New Year which is historically a considerable sell-off period.
China is where majority of #bitcoin #mining is done. They're celebrating Chinese New Year Feb 15-March 1st, nationwide work holiday. I'll visit Shanghai shortly after. This $BTC drawback is the largest shakeout yet. There's going to be another #crypto boom and record $USD volume. pic.twitter.com/MAWvfqPyfJ
— XVGWhale (@XVGWhaleReal) February 5, 2018
According to an article by MarketWatch, Alex Sunnarborg of Tetras Capital Limited said that the massive purchase of bitcoin is an indication that significant traders have put up equity in the market during the period of decline. The trade has also sparked up a debate on some cryptocurrency message boards.
The trade was a trending topic on the internet with some commentators affirming that it was a sure sign that traditional Wall Street bulls are buying big into bitcoin, according to the President of 360 Blockchain USA, Jeff Koyen.
Details About the Trade
The bitcoin address of the unknown buyer is 3Cbq7aT1tY8kMxWLbitaG7yT6bPbKChq64. According to blockchain.info, prior to the latest purchase of bitcoin between February 9 and February 12, 2018, the previous balance on the account was 55,000 BTC. With this new purchase, the account has now risen to 96,650.83 BTC.
Blockchain.info charts on the address show that the first purchase of bitcoin took the account to about 63,000 BTC before three more purchases took it to the present level of 96,650.83 BTC. This bitcoin account balance puts the unknown owner in the bitcoin billionaires club as long as the price of bitcoin does not fall lower than $10,500.