Nikolas Sargeant
Cryptocurrency whales, entities holding substantial token quantities, are actively acquiring Bitcoin (BTC) at lower prices, taking advantage of the cryptocurrency's decline following the recent introduction of U.S. spot ETFs.
Since the U.S. spot ETFs commenced trading on January 11, Bitcoin has experienced a nearly 19% drop, reaching $39,770. This downward trend has prompted crypto whales to engage in bargain-hunting on Bitfinex, a prominent digital asset exchange known for its influential market presence.
According to TradingView data, Bitcoin traded at a $100 premium on Bitfinex compared to the global average price during the weekend. At present, this premium remains near $70, significantly higher than other major exchanges like Coinbase and Binance.
Market analyst and trader Byzantine General highlighted the continuous Trade-Weighted Average Price (TWAP) buying activity on Bitfinex. TWAP is an algorithmic strategy designed to split large orders over time, reducing slippage during substantial transactions. The ongoing TWAP buying spree on Bitfinex is estimated to have accumulated about $50 million in spot trades.
The trend of TWAP buying persisted into Tuesday, driven by FTX bankruptcy estate sales and outflows from the Grayscale Bitcoin Trust (GBTC), leading to Bitcoin prices dropping below $39,000 for the first time since early December.
The demand for the dip is further evident through renewed interest in bullish leveraged bets on Bitfinex. Crypto whales continue to strategically navigate the market, leveraging price fluctuations to their advantage amidst the evolving landscape of cryptocurrency investments.
