By
Steve Muchoki
April 23rd, 2024
With a momentary spike above $11,000 levels, the price of Bitcoin has pulled back down again and is consolidating around $10,700 levels.
Bitcoin, which has been the most-favorite pick of crypto investors, is seen on a major slowdown ever since it hit its all-time high of $20,000. The cryptocurrency has been showing sideways movement for quite a long time and went to correct heavily to as low as $6116 on Feb. 6, according to the data on CoinMarketCap.
Moreover, there have been a lot of analysts and other financial professionals talking about the existence of a “bubble” in Bitcoin and overall crypto markets and many have even predicted that there will be a big financial collapse in the overall market valuations. But it seems that all this has yet not deterred crypto-enthusiasts from parking their investments in cryptos.
Bitcoin has been seen on a strong recovery after its low around $6000 and the cryptocurrency is now a flight of the upward trajectory. The crypto market was in a recovery mode this Friday on Feb. 16, and even Bitcoin surged above $10000 mark showing quite a convincing and stable upward movement.
Details of Mysterious Buying Emerged
However, during the careful analysis later that day on Feb. 16, reports about mysterious Bitcoin buying emerged. According to the tweet by Andy Hoffman, a particular Bitcoin address is seen buying the cryptocurrency in huge amounts over the past few days. As per the information, between Feb. 9 and Feb. 12, Bitcoins worth $344 million have been reportedly bought in the price range between $8500 and $8900. Just before the BTC price clocked $10000, the buyer has reportedly doubled-down the purchase by adding 41000 more coins.
Bitcoin address 3Cbq7aT1tY8kMxWLbitaG7yT6bPbKChq64 purchased $344 million worth at an average of $8,400 from 2/09/18 through 02/12/18 – then, doubled down adding nearly 41,000 coins for a new total of 96,000 coins worth around $900,000,000 at today’s price ($9,400).
— Andy Hoffman🇸🇻 (@Andy_Hoffman_CG) February 15, 2018
Well, this report giver further fuel to the fire of Bitcoin critics. Bitcoin critics in the past have argued for quite a long time that in spite of the cryptocurrency being completely decentralized in its nature of functioning, “bitcoin whales” including big traders and investors have been manipulating the price of the digital currency by holding huge quantity.
Recently, Charlie Munger, the vice-chairman of Berkshire Hathway and second-in-command to Warren Buffet, heavily criticized Bitcoin calling the cryptocurrency as “asinine” and a “noxious poison”. Munger said: “I expect the world to do silly things from time to time because everybody wants easy money. It’s just disgusting that people are taken in by something like this.”
On the other hand, noted crypto analyst Tom Lee, a popular cryptocurrency analyst has predicted that the Bitcoin price will reach $25,000 by the end of this year and also said that the price surge will begin since July this year. He wrote: “In general, we see 2018 being a strong year but we see the larger and more established blockchains growing in dominance in 2018 – hence better upside for ETH and BTC over the FS CryptoFX indices,”
In the last two days, according to the Bitcoin charts on CoinMarketCap, the cryptocurrency is showing more of a consolidating signal around $10,700 levels. A momentary spike in the last 24-hours caused Bitcoin to surge above $11,000 level but a pull-back and retrace are quite visible again. Currently, at the press time, Bitcoin is trading at $10,723.90 with its market-cap valuations just above $180 billion.