Crypto whales, or entities with substantial token holdings, have been observed snapping up bitcoin at cheaper prices following the recent slump in the cryptocurrency's value

According to data from CoinDesk, the leading cryptocurrency has dropped nearly 19% since the debut of US spot ETFs on January 11, with bitcoin trading at a premium of $100 on the Bitfinex exchange compared to the global average price.

This premium has attracted the attention of crypto whales, who are known for their market manipulation tactics.


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, indicating a renewed interest in bullish positions. The dip demand is also evident from the increased interest in bargain-hunting bitcoin on Bitfinex, one of the top 10 exchanges by trading volumes.


The so-called TWAP buying, or trade-weighted average price, strategy has been employed by whales to minimize slippage when buying or selling large orders. According to Byzantine General, a pseudonymous market analyst and trader, "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."

As the price of bitcoin continues to slide, crypto whales are taking advantage of the opportunity to snap up tokens at cheaper prices. The increase in bullish leveraged bets on Bitfinex suggests that these entities are confident in the long-term potential of the cryptocurrency.

It is important to note that the activities of crypto whales can have a significant impact on the cryptocurrency market. Their actions can lead to price fluctuations and create opportunities for other traders to buy or sell tokens at advantageous prices. However, it is essential to conduct thorough research and analysis before making any investment decisions.


The recent slump in bitcoin's price has led to an increase in crypto whales' bargain-hunting activities on Bitfinex.

The renewed interest in bullish leveraged bets and the TWAP buying strategy suggest that these entities are confident in the long-term potential of the cryptocurrency.

As the cryptocurrency market continues to evolve, it is essential to stay informed and up-to-date on the latest market trends and activities of crypto whales.


References:

Godbole, O. (2024, January 24). Crypto Whales Hunt for Bargains As Bitcoin Prices Slide, Data Shows. Retrieved from https://www.coindesk.com/markets/2024/01/24/crypto-whales-hunt-for-bargains-as-bitcoin-prices-slide-data-shows/

elegant_solution. (n.d.). Retrieved January 13, 2024, from https://www.freepik.com/author/user28432665

Freepik - Goodstudiominsk. (n.d.). Retrieved January 5, 2024, from https://www.freepik.com/author/goodstudiominsk

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