An unidentified whale linked to Bitfinex is accumulating 300 Bitcoin daily amid a market downturn. This is being done using a Time-Weighted Average Price (TWAP) strategy, as confirmed by analysts.
TWAP Strategy for BTC Purchases
According to analysis from Blockstream, the whale employs a strategy that reduces direct market impact, allowing for investments of approximately $400 per second. This means purchases are made gradually, minimizing price fluctuations in Bitcoin.
Increase in Institutional Confidence
The whale's purchases have led to an increase in BTCUSDLONGS, indicating growing institutional confidence. While Bitcoin has dropped over 9%, such actions may signal potential market stability in the future. Market participants note, 'This strategic accumulation is a sign of long-term faith in Bitcoin.'
Previous Impact of Whales on the Market
Previously, during similar market conditions, the same whale reportedly purchased up to 1,000 BTC per day, which often led to bullish reversals or supported price levels. Experts suggest that such actions may contribute to price stabilization, although distribution patterns may create resistance levels.
Thus, the activity of the Bitfinex whale may play a significant role in shaping future trends in the Bitcoin market, despite the uncertainty associated with falling altcoin prices.
