The crypto community’s attention is focused on a particular whale Collect Bitcoin for a while. The size of the whale stocks has many wondering who it could be and what is the reason for the accumulation.
Bitcoin Whale collects over 10,000 BTC in November
In a after on his X platform (formerly Twitter), popular Bitcoin investor Lark Davis revealed details about the ‘mystery whale’ that was Collect Bitcoin. Interestingly, the wallet (bc1qch) had accumulated over 10,000 BTC in November. On a chain facts also showed that the wallet currently holds over 12,000 BTC ($460 million).
After this revelation, many began to speculate about who owned the wallet and what was the reason for this accumulation. Lark suggested it could be institutional investors who want to “get ahead of the Spot Bitcoin ETF approval.” Some felt that this could be one of them Discover Bitcoin ETF filers who were preparing for a possible approval.
Regardless of who owned it, many felt this was a good sign of the future for the crypto market. That’s because the accumulation showed that there was still huge demand for the flagship cryptocurrency. You could also conclude that the whale may have been loading their bags before the bull run there’s a project around the corner.
The bullish sentiment was also fueled by the fact that the wallet had not sent any BTC since accumulation began in late October. That immediately suggests that the whale was in it for the long term, rather than wanting to make a quick profit.
BTC price crosses $38,500 | Source: BTCUSD on Tradingview.com
BitMEX The mysterious whale
The mystery surrounding who the whale could be appears to have been solved. The wallet is reported belong to the crypto exchange BitMEX. It is also said that the exchange has simply moved 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 inflows into the wallet came from a particular BitMEX wallet (bc1qm). ZachXBTalso a prominent blockchain researcher declared that the wallet belongs to the crypto exchange. He referred to one X messagewhich noted that the wallet address in question was included in BitMEX’s proof-of-reserves.
If that is the case, then there is not much point in reading into the accumulation. It has become standard procedure for these exchanges proof of reserves as proof of sufficient liquidity on their platform. These reserves are usually proportional to the assets of the users on the exchange.
Featured image from ACS Information Age, chart from Tradingview.com