Emily Walker
The activities of Bitfinex’s large investors, often referred to as whales, have been effective predictors of Bitcoin’s price fluctuations, as an analyst points out.
Recent Activity of Bitfinex Whales Indicates Smart Investment Strategies
In a recent update on X, analyst James Van Straten highlighted trends in long positions for Bitcoin on the Bitfinex exchange, sharing the following chart:
The chart reveals significant shifts in Bitfinex’s long positions relative to Bitcoin’s price over the last few years, indicating that activity on this platform often precedes price changes.
“The actions of Bitfinex whales have proven to be reliable indicators of BTC price movements,” Van Straten observes. During the bearish market of 2022, these large investors established substantial long positions and maintained them until early 2024, at which point they began to close out many positions following a rally.
After this rally, the price of Bitcoin declined. During a period of price consolidation, Bitfinex whales gradually re-entered the market with new long positions. When another bullish trend emerged, these significant investors smartly capitalized on their profits.
Since this profit-taking occurred, Bitcoin’s price has been showing bearish signals again. Currently, Bitfinex’s long positions continue to decline, suggesting that these whales are not optimistic about initiating new bullish trades under current circumstances.
While it’s possible that these whales might misjudge the market this time, their historical accuracy in predicting market movements implies that an increase in their long positions is necessary for Bitcoin to regain its bullish trajectory.
Additionally, the total Exchange Reserve—which measures the Bitcoin held across all centralized exchanges—has recently increased, highlighting more observations from an analyst in a CryptoQuant Quicktake article.
Investors frequently use exchanges mainly for selling, making large deposit inflows typically unfavorable for Bitcoin’s price movements.
Interestingly, during the latest surge in Exchange Reserves, exchanges recorded a total inflow of 20,000 BTC, presenting a potential challenge for Bitcoin as it seeks to regain bullish momentum.
Current BTC Price Status
Bitcoin’s price has remained relatively stable over the past week, hovering around the $96,000 level.