A significant entity, dubbed the "Bitfinex whale," has resumed substantial Bitcoin accumulation, reportedly purchasing approximately 300 BTC per day over the past 48 hours. This activity was highlighted by Blockstream CEO Adam Back, who noted the whale's use of a Time-Weighted Average Price (TWAP) strategy to execute these large orders. Back, a prominent figure in the cryptocurrency space, stated in a recent tweet, "> the @bitfinex whale is back last 48hrs, TWAP buying bitcoin all-day looks like 300 btc/day for now."
The Bitfinex whale is an anonymous, powerful entity known for its large-scale Bitcoin transactions on the Bitfinex exchange. Their consistent buying, particularly through a TWAP strategy, allows for the gradual accumulation of assets without causing significant market disruption. Adam Back's observation carries considerable weight within the industry, given his role as the inventor of Hashcash, a foundational component of Bitcoin's proof-of-work system, and his co-founding of Blockstream.
Such large-scale accumulation by a whale is often interpreted as a sign of "strong hands" preparing for future price movements or absorbing panic selling during market dips. This comes amidst a broader market context where former BitMEX CEO Arthur Hayes recently warned of a global liquidity crunch, predicting Bitcoin could test $100,000 in the near term. The whale's return to buying could influence market sentiment and provide a floor during periods of volatility.
Historically, this particular Bitfinex whale has been observed engaging in similar accumulation sprees, including a period in February when it was reportedly buying up to 1,000 BTC per day. While whale accumulation can signal bullish sentiment, observers caution that these large holders also tend to defend support levels or take profits, meaning accumulation does not always guarantee an immediate upward trajectory. Traders are closely monitoring this renewed activity for signs of a potential trend reversal or a major market move.