World’s third largest bitcoin holder ‘buys down’ after falling prices

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The third-largest holder of bitcoin added more than $ 150 million worth of cryptocurrency to its holdings following the latest price crash.

Data from the blockchain monitoring service BitInfoCharts shows that the investor has “bought the decline” with a purchase of more than 3,000 bitcoins in the past two days.

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The anonymous investor now owns nearly $ 6 billion worth of bitcoin, having made more than $ 3 billion in profit over the past two years due to the rise in the price of bitcoin.

It follows a major collapse in bitcoin prices, which saw it drop from over $ 57,000 to under $ 46,000 in less than 24 hours last week.

The price of Bitcoin has since recovered slightly, hovering around $ 50,000 on Wednesday, but still remains far from the all-time high it reached last month at nearly $ 69,000.

The crypto address first became active in February 2019, when the price of bitcoin was around $ 3,000.

After an initial investment of 10,000 bitcoins, the wallet accumulated tens of thousands of BTC over the next two years. The latest 3,090 bitcoin buy-in brings the total holdings to 118,405 BTC, bought at an average price of $ 21,160 per coin.

While the semi-anonymous nature of Bitcoin means the investor is unknown, some crypto market commentators have suggested that it could be a large institutional entity or an individual.

Speculation has also been drawn to the possibility that this was a cold wallet used by a large cryptocurrency exchange, although an analyst claimed the activity was different from that of an active exchange. .

“The volume and transaction model don’t seem to support this, very inconsistent with other cold portfolios,” pseudonymous analyst VentureFounder said. “On the one hand, many strategic buyers are buying the downside and selling rally behavior and a clear trend towards long-term accumulation.”

The latest buy goes against the trend of other big bitcoin holders, known as Whales, who took the opportunity to slash their profits after the recent record high.

“The digital asset markets have seen huge amounts of sales of crypto whales, which have moved bitcoins from wallets and deposited to exchanges at an astounding rate,” said Marcus Sotiriou, a trader at the digital asset broker based in the UK GlobalBlock. Independent.

The build-up by the third-largest bitcoin holder could be due to the belief that the 2020/21 bull run is not over yet and that new all-time highs could be seen later this month or early this month. next year.

“I don’t think this is the end of the bull cycle,” Sotiriou said. “[The latest price drop] has given weight to the extension cycle theory, where this bull market could extend until 2022, contrary to many analysts’ expectations of a collapse in 2021. ”

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