Bitcoin Surges 2% as Mechanism Capital Doubles $200M Long

Andrew Kang, the founder of Mechanism Capital, has significantly increased his investment in Bitcoin, doubling his position to a $200 million long. This move comes after an initial $100 million bet placed just days earlier, as reported by a crypto analytics firm. The additional investment was made following a post by former U.S. President on his Truth Social platform, where he encouraged buying during a period of market uncertainty.

The timing of Kang's investment coincides with a 90-day pause on global tariff hikes announced by the administration, which had initially sent crypto and stock markets into a rally. This pause followed the implementation of new tariffs that had caused a significant downturn in financial markets. Kang's strategy appears to be influenced by the belief in a "Trump put," the idea that the 's actions will support market recovery, combined with the potential for trade war resolution.

Kang's confidence in Bitcoin's potential for price appreciation is evident in his decision to double down on his investment. He cited the combination of trade war capitulation and the "Trump put" as favorable conditions for Bitcoin to reverse its multi-month downtrend. This strategic move reflects Kang's optimism about the cryptocurrency's future performance amidst global economic fluctuations.

Kang noted that the post could be a sign of the so-called “Trump put.” Meanwhile, Senate Democrats called on the Securities and Exchange Commission in an April 11 letter to launch an insider trading and market manipulation probe into and his affiliates over the post, which they said “appears to have previewed his plans” to pause the tariffs.

Bitcoin has seen an over 2% swing over the past 24 hours as the administration went back and forth on tariff exemptions for electronic goods. Bitcoin hit a 24-hour low of $83,197, wiping most of the gains it made before the weekend, but it has since recovered to trade flat over the past day at around $85,000 after briefly hitting a top of $85,315. Trump posted to Truth Social on April 13 that “there was no tariff ‘exception’ announced on Friday,” April 11, but that levies on electronics are “moving to a different Tariff ‘bucket’” of 20%.

Kang's bold investment in Bitcoin underscores the growing interest and confidence in cryptocurrencies as a viable asset class. His strategy, based on geopolitical events and market sentiment, highlights the potential for significant gains in the crypto market. As the global economic landscape continues to evolve, investors like Kang are positioning themselves to capitalize on opportunities presented by market volatility and political developments.