Bitcoin transactions have risen significantly over the last two years, and with that increase, private transactions, especially CoinJoin transactions, have tripled. While some attribute the rise of CoinJoin transactions to hackers laundering funds, others point to increasing whale accumulation.
The bitcoin market has seen a major shift in the behavior of transactions. So-called CoinJoin private transactions have tripled, according to data from CryptoQuant.
However, Chainalysis presents evidence that the surge in CoinJoin transactions has nothing or less to do with illicit activity; it might be part of another trend dominating the Bitcoin ecosystem.
Per Chainalysis, crypto hacks have only summed up to $2.2 billion this year. Though this is a great number, it translates to less than 0.5% of the inflows of Bitcoin into Realized Cap for the same period, which stands at $377 billion.
BTC whales are privately accumulating
CryptoQuant CEO Ki Young Ju said whales are buying Bitcoin through stealth buys, which are surging. The whales normally use privacy-enhancing methods in asset transfers, particularly with new institutional investors.
This trend is marked by a massive inflow of Bitcoin to accumulation addresses connected to exchange-traded funds (ETFs), MicroStrategy, and custodial wallets.
More than 1.55 million BTC in 2024 alone have entered using these accumulation addresses, which is the greatest testament to the interest of institutions growing in Bitcoin.
The whales typically have strong reasons for keeping their transactions private so that large capital flows will neither upset the market prices of such transactions nor reveal identities.
The CoinJoin tools are friendly in this aspect and hide the flows of funds in a manner that would otherwise be traceable on the Bitcoin blockchain.
Who are these Whales?
While sometimes the market has been kind enough to provide some resemblance of transparency, a significant amount of Bitcoin has not been traced yet. It is estimated that between 240,000 and 420,000 BTC is held by unknown people. So, just who are these whales?
These mystery accumulators indicate that there is a division of ownership of Bitcoin. Institutional players like ETFs and companies like MicroStrategy are often given the limelight as they make large purchases. So, that unknown parties are accumulating Bitcoin, reveals that other private investors or institutional entities have a reason not to reveal their positions.
It says that major investors are pretty keen on having their portfolios somewhat private so they aren’t getting too much attention in the markets.
It’s unique that bitcoin’s ownership is pretty diversified with more big players getting in, such as companies and institutions. However, a lot of them do so secretly, such as with MicroStrategy; most keep it under wraps so no one knows what’s happening.
As Bitcoin continues to grow, with all these CoinJoin transactions getting bigger and more institutions jumping in, it shows how this currency is slowly fitting into a more advanced setup.
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