The correlation between Bitfinex’s Bitcoin reserves and Bitcoin price action has become increasingly evident since last year.
→ A decline in Bitfinex reserves has historically coincided with upward movements in Bitcoin price.
In contrast to previous reserve outflows—often attributed to internal security measures and cold wallet reassignments—today’s transactions appear to be clearly for trading purposes.
Paolo Ardoino, CEO of Bitfinex and Tether, officially confirmed that the recipient wallet belongs to 21 Capital (XXI).
However, of the two wallets involved in today’s movements, only the one receiving 7,000 BTC was explicitly disclosed in the official statement. The second wallet, which received 14,000 BTC, was not publicly identified.
Nevertheless, based on wallet behavior, timing of the transfers, and the fact that XXI is a Tether-backed entity, it is highly probable that the 14,000 BTC transfer was also acquisition-related.
In total, 21 Capital (XXI) appears to have purchased 24,000 BTC.
Written by Mignolet
