The crypto community's attention has been focused on one particular whale that has been accumulating bitcoins for a while. The magnitude of the whale holdings has left many wondering who it could be and the reason for the accumulation.
bitcoin Whale accumulates more than 10,000 btc in November
in a mail On his X platform (formerly Twitter), popular bitcoin investor Lark Davis revealed details about the “mystery whale” that had been bitcoin/” rel=”nofollow”>accumulating bitcoins. Interestingly, the wallet (bc1qch) had accumulated over 10,000 btc in November. in chain bitcoin/address/bc1qchctnvmdva5z9vrpxkkxck64v7nmzdtyxsrq64″ rel=”nofollow”>data It also showed that the wallet currently contains more than 12,000 btc ($460 million).
Following this revelation, many began to speculate about who owned the wallet and the reason for such accumulation. Lark suggested they could be institutional investors looking to “lead the approval of the Spot bitcoin ETF.” Some thought that it could be one of the Detect bitcoin ETF Filers that were being prepared for possible approval.
Regardless of who owned it, many felt it was a good sign of what was to come in the cryptocurrency market. This is because the buildup showed that there was still high demand for the flagship cryptocurrency. It could also have been inferred that the whale was possibly carrying its bags before the confinement that some project is around the corner.
The bullish sentiment was also ignited by the fact that the wallet had not sent any btc since it began accumulating in late October. This instantly suggests that the whale was in it for the long haul rather than looking to make quick profits.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/12/3-reasons-why-Bitcoin-price-is-trading-above-38500" alt="Tradingview.com bitcoin Price Chart” width=”2650″ height=”1530″ loading=”lazy”/>
btc price crosses $38,500 | Source: BTCUSD on Tradingview.com
BitMEX The Mysterious Whale
The mystery about who the whale could be appears to have been solved. the wallet is bitcoin-is-just-a-new-bitmex-wallet/?utm_medium=social&utm_term=organic&utm_source=twitter&utm_campaign=coindesk_main&utm_content=editorial” rel=”nofollow”>reported belong to the bitcoin-bear-market-without-bitmex/” rel=”nofollow”>BitMEX crypto exchange. The exchange is also said to have simply transferred its bitcoin holdings to this new wallet, which is part of the exchange's cold wallet.
This is a real possibility, considering that some of the entries to the wallet come from a particular BitMEX wallet (bc1qm). ZachXBTa prominent blockchain researcher, too fixed that the wallet belongs to the crypto exchange. He referred to a x publicationwhich noted that the wallet address in question was included in BitMEX's proof of reserves.
If so, then there isn't much meaning to read into the buildup. It has become standard procedure for these exchanges to have crypto-investors-proof-of-reserve/” rel=”nofollow”>proof of reserves as proof of sufficient liquidity on its platform. These reserves are usually proportional to users' assets on the exchange.
Featured image from ACS Information Age, chart from Tradingview.com
