Justin Sun has added to his bitcoin stash – should you follow suit? After the unexpected crypto market crash pushed Bitcoin (BTC) prices below $40,000, some investors are taking the chance to buy the dip in the hope that prices will rise again soon.
Big swings on prices are the norm for crypto, and just like several times before, the prices of Bitcoin and other cryptocurrencies could soar again soon.
Justin Sun is the CEO and founder of TRON, and he clearly thinks bitcoin will resume its charge higher. He announced that he has bought 4,145 Bitcoin worth more than $150 million.
Sun bought the Bitcoin at an average price of around $36,800. In April bitcoin printed an all-time high of $64,000, but in the latest selling, bitcoin briefly traded as low as $30,000.
Buying the dip?
Some analysts are describing the crypto crash as the ‘greatest wealth transfers of the year’, with 50% being shed before a slight recovery happened.
However, despite the speed at which some crypto holders moved to liquidate their holdings, the bulls among the crypto market watchers think the market will recover soon.
Michael Saylor, CEO of MicroStrategy, is one such bull. He is of the view that the bull market in cryptocurrencies will be restored soon.
Interestingly, Elon Musk was also among the crypto influencers inferring that the market will soon recover. He posted diamond and hands emojis – diamond hands being the term used to describe investor who intend to hold their investment for the long-term and who will not succumb to the vagaries of volatile markets.
Justin Sun is among the biggest investors to have publicly identified as having bought the dip. However, Sun is not new to the crypto space, given that he is the CEO of BitTorrent and TRON. According to Sun, Bitcoin has contributed immensely to decentralized technology.
At the time of writing, Bitcoin is trading at around $40,000, which shows that Sun has made a large profit on his $150 million investment.
Crypto market plummeting
The crypto market has been plummeting in the past week, with more than 50% of the value of cryptocurrencies being wiped out in hours. Bitcoin has been in the vanguard of the crash, with the token price dipping from $50,000 to below $40K.
One of the main causes of the unexpected Bitcoin crash was Elon Musk. The Tesla CEO stated that his company would no longer accept payments in Bitcoin because of the environmental damage that the mining activities were causing due to its high energy consumption.
The other main cause of the crash is China banning Bitcoin crypto payments. Authorities in the country reiterated that financial institutions were not allowed to make payments with Bitcoin or other cryptocurrencies because of the large price fluctuations risking disrupting the economy.
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