Bitcoin’s on-chain activity was once again sparkling as Blockstream CEO Adam Back warned the Bitcoin community about the return of what is called “Bitfinex Whale.” According to Buck, this unknown but powerful entity has accumulated Bitcoin at an incredible rate, using a time-weighted average price (TWAP) purchasing strategy to buy around 300 BTC per day in the last 48 hours. He emphasized:
“For the context 300 BTC/day, a day is $400/sec. Historically, they’ve been doing it continuously for several weeks recently, increasing 1000 BTC/day ($1300/sec at these prices at $1300/sec).”
Bitfinex Whale Effect
This whale’s persistent appetite, particularly those related to Bitfinex, is a potential market-powering signal. Whale accumulation (large purchases systematically performed over time) can absorb a significant supply, causing upward pressure on prices and stabilizing the market during volatility. This kind of whale behavior precedes a major bullish move in previous cycles, and is the short-term volatility when the whale shifts gears and exit positions.
But not everyone sees this as explicitly bullish. As one of the back’s followers commented:
“That’s not a good thing as Bitfinex whales buy down trends and sell up trends.”
This highlights long-term dynamics. Some whales accumulate during market debilitating and distribute (sell) liquidity into stronger markets, adding both buying support during recessions and potential resistance during gatherings.
Whatever your view on Bitfinex whales, Adam Back is not a normal observer. As the inventor of Hashcash, an important work algorithm referenced in the original Bitcoin white paper, the back is considered one of the founders of the crypto space.
He is the CEO and co-founder of Blockstream, a global leader in Bitcoin protocol development and infrastructure. Nakamoto Satoshi back’s Market Commentary, famously known as Cypherpunk and anonymous creator of Bitcoin, is one of the first people in the industry to have a massive amount of weight.
Will Bitcoin prices shake up a wider slump?
Today, former Bitmex CEO Arthur Hayes warned of the global liquidity crunch, hoping that BTC will test $100,000 in the near future, adjusting his position accordingly. Can traders expect this to change with Bitfinex whales back in the scene?
On-chain data suggests that whales accumulate at this scale are usually a sign of strong hands preparing for the next price movement, or smart money intervening to absorb panic sales. With the already record low supply of exchanges and surges in institutional profits, continuing spot purchases from traders like Bitfinex whales can burn both relief gatherings and long-term supply squeezes, especially if they last for days or weeks.
However, whale accumulation does not guarantee an upward straight line. In recent years, large holders have shown that they are as likely to protect their support as they benefit when opportunities arise. Traders are closely watching signs of trend reversal or major movement.