Former Hedge Fund CEO Invested $1M into Bitcoin When the Price Dipped

He invested up to £744,435 ($1 million) into Bitcoin via the Bitwise Bitcoin exchange-traded fund (ETF) when the price dipped and stayed muted between 25th February and 27th March.

A US congressman reportedly invested a hefty sum of up to £744,435 ($1 million) into Bitcoin (BTC) during the recent market downturn.

What Happened: Congressman John M. McCormick, Jr., made a substantial investment in the cryptocurrency via the Bitwise Bitcoin exchange-traded fund (ETF) as the token’s price experienced a decline and remained stagnant. The investment period spanned 25th February to 27th March, according to his latest financial disclosure.

McCormick, a former US Army officer and CEO of Bridgewater Associates, is known for his interest in cryptocurrencies. His crypto portfolio has already yielded double-digit profits and is on the rise as BTC prices appear to be embarking on another rally since 20th April.

Bitcoin prices have surged over 15% in the past month and are currently testing levels as high as £70,721 ($95,000).

McCormick’s investment pattern since 2024 showcases a different approach compared to other Congress members who trade stocks, preferring low-risk investment instruments. He hasn't faced any accusations of insider trading, unlike Nancy Pelosi or Greene.

However, the US President’s heavy engagement with the crypto community and the launch of his official token, which quickly lost value days later, sparked discussions about political figures capitalising on the lack of crypto regulations amid evident signs of market manipulation.

Trump is aiming for widespread adoption of cryptocurrency and is taking the lead in setting regulations to prevent instances of “rug pulls” and “pump-and-dump” activities. Until robust rules are in place, a growing number of Bitcoin investors and traders face significant risks of losing funds, not only due to market fluctuations but also to scams and fraud.

Moreover, economists and analysts are observing a growing correlation between Bitcoin and the stock market despite the token being described as digital gold. This indicates that similar price patterns are emerging in stocks and Bitcoin when markets are affected by unexpected news like the tariff crisis or concerns over the US Federal Reserve’s autonomy.

McCormick is among several Congress members who made significant investments during the recent market turbulence, which began on 25th February when both the S&P 500 and Bitcoin experienced declines and failed to recover.

Senator Josh Hawley recently reintroduced the PELOSI Act, which would restrict lawmakers and their spouses from buying and selling individual stocks while in office. The bill has received bipartisan support. The proposed law carries a civil penalty for unlawful trades and mandates that violators return any realized profits to the US Treasury.

However, the legislation wouldn't prevent lawmakers from investing in diversified mutual funds, ETFs, or US Treasury bonds. Additionally, Bitcoin is not classified as a security, rendering it exempt from this Act. Consequently, representatives with valuable market information have the freedom to time their investments in the token and accumulate profits, which wouldn't be possible otherwise.