Bitcoin (BTC)As U.S. spot ETFs continue to decline following their debut, crypto whales with significant token holdings appear to be scooping up Bitcoin at lower prices.
BTC Whales Are Buying Amid Bitcoin Price Drop
Since spot ETFs began trading in the US on January 11, Bitcoin has fallen nearly 20% to $38,555.
Over the weekend, Bitcoin traded at a $100 premium to the global average price on Bitfinex, one of the top 10 exchanges by trading volumes.
This may indicate that some crypto whales are collecting Bitcoin by bargaining on Bitfinex, an exchange famous for creating volatility in the market. At the time of writing, the premium was around $70, which is quite high compared to other exchanges such as Coinbase and Binance.
“Whales on Bitfinex are buying BTC via TWAP, so Bitfinex may be trading at a large premium.
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 difference between the price at which a buy or sell order is executed and the price at which it is requested.
Bottom demand is also evident from the renewed interest in leveraged bullish positions on Bitfinex. The number of open BTC/USD long positions, or leveraged bullish transactions, increased nearly 8% in a week to over 73,000 contracts.
*This is not investment advice.
For exclusive news, analysis and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price monitoring now by downloading our applications!