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Buying the Dip :Data Reveals Bitcoin Whales Actively Accumulating on Bitfinex

The feeding time for crypto whales as Bitcoin price take a dive

As Bitcoin's value dips in the wake of the U.S. spot ETFs debut, crypto whales are seizing the opportunity to buy the dip. Recent data indicates a surge in Bitcoin purchases by these large-scale holders, particularly as the leading cryptocurrency has seen a 19% drop to $39,770 since January 11th. 

This trend of accumulation is most notable on Bitfinex, a digital assets exchange renowned for its high trading volumes. Here, Bitcoin traded at a significant premium over the weekend, signaling a strong whale presence in the market. These savvy investors are known for their ability to influence market dynamics, and their current buying spree suggests a strategic move to capitalize on the lower prices.

The whales’ Bitfinex strategy unveiled

At Bitfinex, one of the top 10 exchanges by trading volume, a unique pattern emerged. Over the weekend, Bitcoin's trading price on this platform exceeded the global average by around $100, a clear indicator of whale activity. This premium later adjusted to near $70, still notably higher than other major exchanges like Coinbase and Binance.

A pseudonymous market analyst, Byzantine General, shed light on this phenomenon: 

"Someone on Bitfinex has been nonstop TWAP buying $BTC for 3 days straight now, which is why Bitfinex has been trading at a fat premium. About $50m spot accumulated so far is my estimate.” 

TWAP, or time-weighted average price, is a strategic approach employed by traders to execute large orders without causing major market ripples, thereby minimizing slippage.

Market implications and future outlook

The focused buying spree on Bitfinex is not the only sign of market optimism among Bitcoin investors. Despite recent downward pressures, such as sales from the FTX bankruptcy estate and outflows from Grayscale Bitcoin Trust pushing Bitcoin below $39,000, a renewed interest in bullish leveraged bets is evident. 

Bitfinex's data reveals a notable increase in BTC/USD longs - bullish leveraged positions - which have risen nearly 8% to over 73,000 contracts in just one week. This uptick suggests a broader market sentiment that views the current price levels as a strategic entry point, potentially heralding a period of recovery and growth in the Bitcoin market.