Crypto Whales Dive Into Bargain Hunting Amid Bitcoin Price Dip

• Crypto Whales Accumulating Bitcoin Amid Market Dip
• Whales Seeking Bargains on Bitfinex
• Non-stop TWAP Buying
• Continued TWAP Buying and Increased Leveraged Bets

Crypto Whales Accumulating Bitcoin Amid Market Dip

Crypto entities with substantial token holdings, commonly known as 'crypto whales', are seizing the opportunity to accumulate Bitcoin$42,260 -0.64% (BTC) following a significant decrease in its price after the debut of U.S. spot ETFs. Bitcoin has seen a nearly 19% decline, dropping to $39,770 since the U.S. launched spot ETF trading on January 11th.

Whales Seeking Bargains on Bitfinex

Bitfinex, one of the top 10 digital asset exchanges by trading volume, has seen considerable activity from crypto whales seeking to capitalize on the Bitcoin downturn. These Bitfinex whales are known for their influence on market dynamics. TradingView data indicates that Bitcoin was trading $100 above the global average on Bitfinex over the weekend. At the time of reporting, this premium had decreased slightly to approximately $70, still significantly higher than other popular exchanges such as Coinbase and Binance.

Non-stop TWAP Buying

A well-known, albeit anonymous, market analyst and trader known as Byzantine General noted that an individual has been consistently using a TWAP (trade-weighted average price) strategy to buy Bitcoin on Bitfinex for three consecutive days. This individual's activities have contributed to Bitfinex's noticeable premium. The trader estimates an accumulation of around $50 million in Bitcoin so far. TWAP is an algorithmic strategy used to divide large trading orders over time to help minimize slippage - the discrepancy between the desired and actual execution price of a trade.

Continued TWAP Buying and Increased Leveraged Bets

Despite sales from the FTX$3.28 -5.38% bankruptcy estate and outflows from Grayscale Bitcoin Trust (GBTC) pushing prices below $39,000 - a first since early December - the TWAP buying continued. This dip has sparked increased interest in bullish leveraged bets on Bitfinex, with the number of open BTC/USD longs increasing by nearly 8% to over 73,000 contracts within one week.

Edited by Jonathan Stoker