Mechanism Capital's Founder Doubles Bitcoin Bet to $200M Amid Market Volatility

Andrew Kang, the founder of Mechanism Capital, has significantly increased his investment in Bitcoin, doubling his position to a $200 million long. This move follows an initial $100 million bet on the cryptocurrency, which was made just days earlier. According to onchain data, Kang's crypto address made another $100 million long bet on Bitcoin, with an expected profit or loss of $6.8 million.

The timing of Kang's investment coincides with a series of events that have impacted the financial markets. On April 9, the US President posted on his Truth Social platform that "THIS IS A GREAT TIME TO BUY!!! DJT." This statement was followed by the administration announcing a 90-day pause on its global hiked tariff regime, which sent crypto and stocks rallying. The tariffs, which had been unveiled on April 2, had initially tanked most financial markets.

Kang's decision to double his Bitcoin position appears to be influenced by the trade war capitulation and the belief in a "Trump put," which suggests that the president will work to boost the stock market. In an April 12 post, Kang noted that the president’s April 9 Truth Social post could be a sign of the so-called “Trump put,” which he believes is the perfect combination for Bitcoin to reverse a multi-month downtrend.

Meanwhile, Senate Democrats called for an investigation into the president and his affiliates over the post, which they claimed previewed his plans to pause the tariffs. This call for an investigation adds another layer of complexity to the situation, as it raises questions about the potential impact of political actions on financial markets.

Bitcoin has experienced volatility in recent days, with an over 2% swing in the past 24 hours as the administration clarified its stance on tariff exemptions for electronic goods. Despite this volatility, Bitcoin has shown resilience, recovering to trade flat over the past day at around $85,000.

Kang's bold move to double his Bitcoin position reflects his confidence in the cryptocurrency's potential for growth, despite the recent market volatility. His strategy appears to be influenced by political events and the belief in a "Trump put," which he sees as a catalyst for Bitcoin's reversal of its downtrend. The call for an investigation by Senate Democrats adds an element of uncertainty, but Kang's actions suggest that he remains optimistic about Bitcoin's future prospects.