Data Reveals Crypto Whales Are Searching for Deals Amid Bitcoin Price Decline
Crypto whales, entities with substantial token holdings, seem to be taking advantage of the declining price of bitcoin (BTC) as the leading cryptocurrency continues to slide following the recent debut of U.S. spot ETFs.
According to CoinDesk data, bitcoin has fallen nearly 19% to $39,770 since the spot ETFs began trading in the U.S. on Jan. 11.
Some crypto whales are now looking for bargains on Bitfinex, one of the top 10 exchanges by trading volumes. Bitfinex whales are known for their impact on the market.
Data from TradingView indicates that over the weekend, bitcoin was trading at a premium of $100 on Bitfinex compared to the global average price. At the time of writing, the premium was near $70, significantly higher than other exchanges, including Coinbase and Binance.
“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,” pseudonymous market analyst and trader Byzantine General stated on X Sunday.
TWAP, or trade-weighted average price, is an algorithmic strategy used for splitting up large orders over time, helping traders minimize slippage when buying or selling large orders. Slippage is the gap between the price at which a trading order is executed and the price at which it was requested.
The so-called TWAP buying continued Tuesday, as sales from the FTX bankruptcy estate and outflows from Grayscale Bitcoin Trust (GBTC) pushed prices below $39,000 for the first time since early December.
The demand for the dip is also evident from the renewed interest in bullish leveraged bets on Bitfinex.
The chart shows the number of open BTC/USD longs, or bullish leveraged bets, has increased nearly 8% to over 73,000 contracts in one week.
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