Why Chinese Billionaire Bought 10,000 Bitcoin in Q1
In the first quarter of 2018, when the BTC price dropped to the $6,000 for the first time in 2018, Chinese billionaire angel investor Wang Feng purchased 10,000 BTC in the $6,600 region. Along with bitcoin, Feng bought Theta, Ontology (ONT), Cortex (CTXC), ArcBlock (ABT), Zipper (ZIP), YeeCall (YEE), Dxchain (DXC), Charter (CAF).
10,000 BTC, which is worth around $76,000,000, is an amount of bitcoin that is difficult to purchase on cryptocurrency exchanges without significantly driving the price up in the short-term. Feng most likely had purchased $76 million worth of bitcoin in the over-the-counter (OTC) market or directly from miners.
A bulk purchase of bitcoin of over $50 million requires significant confidence in both the short-term and long-term price trend of BTC. Feng likely assumed that $6,600, the major support level for bitcoin, would remain as the bottom even for future corrections and bear cycles.
“When asked about the market crash in March, he dismissed it as no big deal. He called it a short-term setback and in fact, said Cryptocurrencies rose very well in the long term,” CCN reported.
If the bitcoin price drops below $7,000 and to the higher end of $6,000, the market will likely experience a strong bounce and record a major rally throughout the third quarter of 2018, potentially back to the $10,000 and $12,000 region, as it did in March.