Bitcoin News Today: Bitfinex Whale Buys 300 BTC Daily Using TWAP Strategy Amid Market Tension

Bitcoin markets are once again on high alert with the reemergence of the Bitfinex whale, a major unidentified trader known for large-scale Bitcoin transactions. According to Adam Back, CEO of Blockstream and a key figure in Bitcoin’s early development, the whale has been purchasing approximately 300 BTC per day over the past 48 hours using a TWAP (Time-Weighted Average Price) strategy. This approach spreads trades over time to avoid sharp price swings and detectability [1].

The whale’s activity is notable given the current state of the market. Exchange Bitcoin supply remains near multi-year lows, amplifying the significance of such accumulation. Historical patterns show that the Bitfinex whale has often influenced price action through strategic buying and selling during both bullish and bearish cycles. Back noted that in prior cycles, the whale increased its daily purchases to as high as 1,000 BTC [1].

The 300 BTC per day translates to a rate of around 400 BTC per second over the course of a day, highlighting the scale of the whale’s ongoing activity. Analysts suggest that this could serve as a buffer against downward price pressure, especially if the buying persists. The whale appears to be capitalizing on low liquidity and volatility to accumulate supply, a move that could eventually lead to a tighter market and support upward price momentum [1].

Adam Back’s observations carry particular weight due to his role in Bitcoin’s foundational development, including his invention of Hashcash, the proof-of-work mechanism used in the original Bitcoin whitepaper. His comments are often viewed as signals by institutional investors, and his affirmation of renewed whale activity suggests that deep-pocketed market participants are showing confidence in Bitcoin’s long-term prospects.

Despite this, some traders remain cautious. Past cycles have seen whales accumulate during downtrends but then offload during rallies, creating uncertainty. One trader observed, “That’s not a good thing, as Bitfinex whales buy downtrends and sell uptrends.” This sentiment reflects ongoing debate over whether the current accumulation will result in price support or contribute to a sell-off [1].

The whale’s actions occur amid broader concerns in the crypto space. Arthur Hayes, former Bitfinex CEO, has warned of a global liquidity crunch and adjusted his positions in anticipation of Bitcoin testing $100,000. Whether the whale’s behavior aligns with this bearish outlook remains to be seen. However, the whale’s TWAP-based accumulation contrasts with the recent retail panic and institutional hesitation, signaling a potential shift in market dynamics [1].

If the whale continues to buy at the current rate, it could tighten the availability of Bitcoin on exchanges, increasing the likelihood of a supply squeeze. This scenario could create conditions favorable for a longer-term price increase. However, analysts emphasize the need to monitor for any deviation in the whale’s buying pattern, as whales are known to shift strategies quickly and sometimes sell into strength [1].

The whale’s return underscores the ongoing tension between institutional strength and retail caution in the Bitcoin market. While the continued accumulation may offer support, sudden selling could reintroduce volatility. As traders watch closely, the market remains on edge, waiting for signs of whether this is a setup for a new upward move or a trap waiting to be sprung.

Source: [1] Bitfinex Whale Returns: 300 BTC a Day and a Market on Edge (https://coinmarketcap.com/community/articles/6890a8ec90aa550a28eaa7ab/)