Whale Withdrawals from Bitfinex Fuel Rally
Bitcoin has surged above $59,000 as large investors, known as “whales,” have been withdrawing significant amounts of BTC from the cryptocurrency exchange Bitfinex.
Whales Pull $240 Million from Bitfinex
Analyst James Van Straten has noted that the recent surge in Bitcoin’s price towards $60,000 is partly due to the large outflows from Bitfinex.
Positive Sign for Bitcoin
Typically, large exchange inflows can indicate selling pressure. However, outflows can suggest that investors are holding onto their coins or buying new ones. In the case of Bitfinex, the outflows are particularly bullish because, according to Straten, the whales on this exchange are considered “smart money.”
Profit-Taking Concerns
While the trend on Bitfinex is positive, the overall market may not be as rosy. Analysts have observed a surge in Bitcoin inflows to spot exchanges, which could indicate profit-taking. However, it’s important to note that the smart money whales have been supporting the coin throughout this rally.
Bitcoin Price Action
Bitcoin has been steadily approaching $60,000, with a 4% gain in the past day.
