The 'Bitfinex Whale', who had been silent in the BTC market for a long time, has reappeared. Blockstream's CEO Adam Back revealed that this whale has been continuing large-scale Bitcoin purchases, buying up to 300 BTC per day recently.
According to Adam Back, this whale is collectively buying Bitcoin at a rate of $400 per second using a Time-Weighted Average Price (TWAP) strategy. In the past, this whale has shown a recurring pattern of purchasing up to 1,000 BTC per day over several days or weeks, and analysts believe a similar pattern is likely to unfold this time.
Large-scale purchases associated with Bitfinex have a significant market impact. Back delivered a near-warning message to the Bitcoin community with a mention that "the whale is back". In fact, these whale's cumulative accumulation activities can support prices by absorbing supply and can sometimes serve as a strong signal of potential price increase.
However, there are nuanced perspectives. Some investors responding to Back's post expressed concerns that "Bitfinex whales buy during downturns and sell during uptrends", suggesting their presence might create selling pressure in the short term. This implies a strategy where smart money identifies the 'bottom' during weak markets and realizes profits during strong markets.
Adam Back is not just an analyst. He is the creator of 'Hashcash', a Proof-of-Work (PoW) technology that is a core concept of Bitcoin, and a central figure in the Cypherpunk movement who directly exchanged emails with Satoshi Nakamoto. The trends he observes in the Bitcoin market are closely watched by expert groups.
Meanwhile, Bitcoin prices have been experiencing a recent decline. BitMEX co-founder Arthur Hayes warned of a short-term adjustment due to liquidity deterioration and predicted that BTC will soon test $100,000. However, some analysts interpret this whale accumulation trend as a signal of 'strong hands' entering at the bottom.
Especially given that exchange holdings have reached record lows and institutional investor inflows continue, these whales' repeated purchases could serve as a catalyst for price recovery. However, since it's uncertain when they might sell, it's more realistic to interpret this as a signal of a supply-demand battle rather than a confirmed price increase.
It remains uncertain whether the whale's accumulation intensity will be maintained or if they will actually lead a price rebound. The market continues to track their moves while watching for signs of the next major wave.
Real-time news...Go to TokenPost Telegram
<Copyright โ TokenPost, Unauthorized Reproduction and Redistribution Prohibited>
