An ambitious Bitcoin trader has bought $400m worth of the world’s biggest cryptocurrency.
Digital currencies have been in freefall this year, with Bitcoin dropping just below $7,000 on 5 February after reaching a high of $19,791 on 17 December.
Fears were growing that the cryptocurrency bubble was bursting as governments around the world clamped down on cryptocurrency exchanges.
However, according to US website MarketWatch, an unknown trader has just bought 41,000 bitcoins, taking his total holding to more than 96,000.
Buying the rebound
At today’s price of around $11,000, that makes his – or her – holding worth just over $1bn.
“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,” said Alex Sunnarborg, founding partner of Tetras Capital.
Bitcoin has recovered from a low of $6,241 on 6 February to $10,997, a rise of 76%.
Other digital currencies have also recovered in the past fortnight. Etherium, the second biggest by market capitalisation, is currently trading at $952.58 (12.43pm GMT), up 51% from a low of $630.37 on 6 February.
Ripple, the third largest cryptocurrency is trading at around $1.15, up 82%, having fallen to $0.63 on the same day.