Crypto whales, companies with large token holdings, appear to be snapping up Bitcoin (BTC) at cheaper prices as the leading cryptocurrency continues to slide following its recent US spot ETF debut.
Bitcoin has fallen nearly 19% to $39,770 since spot ETFs began trading in the U.S. on Jan. 11, data from CoinDesk shows.
This has led to some crypto whales bargain hunting for Bitcoin on digital asset exchange Bitfinex, one of the ten exchanges with the largest trading volume. Bitfinex whales are notorious for making waves in the market.
Data from TradingView shows that Bitcoin traded at a $100 premium to the global average price on Bitfinex over the weekend. At the time of writing, the premium was close to $70, significantly higher than other exchanges including Coinbase and Binance.
“Someone on Bitfinex has been buying $BTC via TWAP for three days straight, which is why Bitfinex is trading at a whopping premium. My estimate is that around $50 million has accumulated so far,” said pseudonymous market analyst and trader Byzantine General on X-Sunday.
TWAP, or trade weighted average price, is an algorithmic strategy used to split large orders over time, helping traders minimize slippage when buying or selling large orders. Slippage is the gap between the price at which a trade order is executed and the price at which it was requested.
The so-called TWAP buying continued on Tuesday as sales from FTX's bankruptcy estate and outflows from the Grayscale Bitcoin Trust (GBTC) pushed prices below $39,000 for the first time since early December.
The declining demand is also reflected in the renewed interest in bullish leveraged bets on Bifinex.
The chart shows that the number of open BTC/USD long positions, or bullish leverage bets, increased by almost 8% to over 73,000 contracts in a week.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.