Bitcoin ETFs, MicroStrategy, whales spur 3X jump in private BTC txs: Analyst
Private Bitcoin transactions using CoinJoin have tripled since 2022, driven by significant Bitcoin accumulators, particularly linked to spot Bitcoin exchange-traded funds, MicroStrategy, and custodial wallets. These Bitcoin whales utilize privacy transactions to transfer funds to new institutional investors. CoinJoin obscures ownership of unspent transaction outputs by pooling inputs and outputs from multiple parties. Despite concerns about misuse, only 0.5% of Bitcoin's realized cap inflows in 2024 were attributed to losses from illicit activities. Unidentified Bitcoin whales are estimated to hold up to 420,000 Bitcoin, valued over $40 billion. Speculation exists regarding the identity of these whales, with suggestions of potential nation-state involvement. Law enforcement has intensified scrutiny on CoinJoin, leading to arrests related to privacy-focused services like Samourai Wallet and Tornado Cash, both implicated in facilitating unlawful transactions and money laundering.
