Bitcoin Whales Ramp Up Accumulation via Privacy Transactions, Stressing the Growing Influence of Institutional Players in the Cryptocurrency Market

CryptoQuant CEO Ki Young Ju has observed a significant rise in Bitcoin accumulation by whales through privacy-focused transactions. He highlighted that the annual number of CoinJoin transactions has tripled over the past two years. While some speculate that this increase is tied to hackers laundering funds, Chainalysis data suggests otherwise, reporting that total hacker-related losses this year amounted to $2.2 billion—less than 0.5% of Bitcoin’s $377 billion in realized market inflows.

Ki further noted that in 2024 alone, 1.55 million BTC flowed into accumulation addresses, primarily associated with ETFs, MicroStrategy, and custodial wallets. He explained that whales often use privacy transactions to transfer funds to emerging institutional investors. Beyond these disclosed holdings, an estimated 240,000 to 420,000 BTC remain in the hands of unidentified accumulators, raising the question of who these whales might be.

The activity of these large-scale investors underscores the growing influence of institutional and private players in the cryptocurrency market, as well as the increasing use of privacy-enhancing mechanisms in Bitcoin transactions.