Bitfinex’s Bitcoin Approach Is More Than Just Holding

Bitcoin continues to draw mainstream interest as Bitfinex, a prominent crypto exchange, maintains a strategic BTC position on its balance sheet. As revealed by an inside source, the exchange’s position at such a tumultuous time underscores its commitment to the pioneering cryptocurrency. 

CTO Paolo Ardoino emphasized the need for crypto exchanges to reinvest their profits into Bitcoin and also has quite an optimistic view of the flagship crypto. He even predicted that BTC could “retest” its all-time high near $69,000 in 2023.

Beyond the BTC acquisition, Bitfinex has also extended support for Layer 2 networks like the Lightning Network and the Liquid Network. Additionally, the trading platform is working on the RGB protocol to enable more cost-effective and private transactions, simplifying token issuance on the Bitcoin blockchain.

Bitfinex’s affiliation with Tether, its sister firm, is noteworthy, as Tether ranks as the 11th largest BTC holder globally. Tether’s decision to allocate a portion of its profits to BTC investment further highlights the shift toward cryptocurrencies over traditional assets like U.S. government debt. Currently, Tether possesses approximately $1.6 billion worth of Bitcoin.

Bitfinex and Tether join a select group of companies that include MicroStrategy, Tesla, and Square that hold BTC as part of their balance sheets. This unconventional approach to treasury management reflects the growing importance of cryptocurrencies in the financial world.

Bitcoin HODLers Display Intriguing Pattern

While Bitcoin is trading at approximately $25,695, Bitfinex is expanding its services with a peer-to-peer exchange targeting clients in Argentina, Venezuela, and Colombia. This initiative aims to promote financial freedom and inclusion by providing a reliable platform for direct P2P token trading.

Users can engage in transactions involving Bitcoin, Tether tokens, Tether Gold, and Ether, fostering convenience and accessibility based on individual preferences and needs. With this endeavor, Bitfinex hopes to increase access to financial services related to digital assets in Latin America and fill the gap left by the closures of P2P exchanges LocalBitcoin in February and Paxful in April.

The realm of cryptocurrency is currently experiencing a noteworthy change in the actions of BTC holders. The recent revelation that the quantity of HODLed or lost coins has surged to a five-year peak of 7,850,612.164 BTC presents an intriguing chance to assess the HODLing sentiment among Bitcoin investors from 2021 to the present moment.

Lipika Deka: Lipika is a crypto-journalist at TWJ. A graduate in economics and finance, she has a keen interest in the political and socio-economic facets of blockchain technology and the cryptocurrency industry.