Fresh data: Whales are buying Bitcoin at price lows

Recent data shows that whales, or addresses that have a large amount of bitcoins, are buying bitcoins at price floors following the recent drop.

According to CoinDesk, since the start of trading of Bitcoin cash ETFs in the United States on January 11 (December 21), this digital currency has lost about 19% of its value and has now reached $39,900.

The mentioned whales have been seen in the Bitfinex exchange, which is one of the top 10 exchanges in the world in terms of volume of transactions. Bitfinex whales are generally known for causing market volatility.

Market data shows that at the beginning of the week, Bitcoin was traded $100 more expensive than the global average price on the Bitfinex platform, which is a big difference. This difference at the time of writing this report is 70 dollars, which is higher than the buying and selling rate in major exchanges such as Binance and Coinbase.

Byzantine General, an active analyst on the social network X (former Twitter), said:

There are traders in the Bitfinex exchange who have been buying bitcoin continuously and non-stop for the past 3 days, and this is the reason for the price difference between Bitfinex and other markets. My estimate is that they have accumulated about 50 million dollars of bitcoins so far.

TWAP or Time-weighted average price is an algorithmic trading strategy that is used to split large orders over time. This method allows the trader to avoid extreme fluctuations in the price of an asset due to the presence of a large order.

The purchases of these whales with the TWAP strategy continued yesterday, while the conditions of the bankrupt FTX exchange, as well as the withdrawal of capital from the Grayscale stock exchange fund, made the price below 39,000 for the first time since December. delivered dollars

This growth in demand for buying at price floors is evident from the increase in the use of trading levers in the direction of price rise (long).

The chart below shows that the number of bullish or long trading positions in the Bitfinex BTC/USD market has increased by 8% over the course of a week to over 73,000 positions.