At one point earlier this month, Bitcoin was trading below $7,000. However, it has since made a rally to its current valuation of around $11,200 according to CoinDesk. It appears that fears of stiffer regulations and an overinflated valuation are starting to subside, which is breathing some new life into Bitcoin.
However, Vitalik Buterin, the mastermind behind Ethereum, warns that investors could still stand to lose bigtime with cryptocurrencies. "Cryptocurrencies are still a new and hyper-volatile asset class, and could drop to near-zero at any time," said Buterin this weekend via Twitter. "Don't put in more money than you can afford to lose. If you're trying to figure out where to store your life savings, traditional assets are still your safest bet."
With that in mind, at least one investor is definitely putting quite a few eggs into one basket, which in turn might be helping to drive Bitcoin up this week. An anonymous investor purchased nearly $400 million in Bitcoin between February 9th and February 12th.
The purchase increased the buyer's war chest from 55,000 coins to over 96,000 coins. During the time that the massive purchase took place, Bitcoin was hovering just under $9,000. Given the $2,000+ gain in just the past few days for the cryptocurrency, the investor is already looking at a gain of over $82 million.