Bitcoin privacy transactions have tripled over the past two years as large holders move substantial amounts through CoinJoin protocols, according to data from CryptoQuant CEO Ki Young Ju. Bitcoin price has dropped 3.4% to $95,000 in the past 24 hours
Blockchain data reveals sophisticated accumulation patterns, with 1.55 million BTC flowing into institutional and custodial wallets throughout 2024.
Between 240,000 to 420,000 BTC has moved through privacy-preserving methods to unknown destinations, raising questions about the identity of these major accumulators.
Privacy Transaction Surge and Institutional Accumulation
The annual average of CoinJoin transactions has seen a threefold increase over the past two years, marking a clear shift in how large Bitcoin holders manage their assets.
While concerns about illicit activity often surround privacy transactions, Chainalysis data puts total Bitcoin losses from hacks at $2.2 billion in 2024 – merely 0.5% of the $377 billion in realized capital inflows to the network.
The flow of Bitcoin into accumulation addresses tells a more comprehensive story about institutional adoption. Throughout 2024, 1.55 million BTC moved into long-term holding addresses, with most of these flows directed toward ETFs, MicroStrategy’s treasury, and institutional custody services.
– Advertisement –
These publicly trackable movements, however, only tell part of the story. CryptoQuant’s analysis has identified an additional 240,000 to 420,000 BTC moving through privacy-preserving channels to unknown destinations.
The pattern of institutional accumulation appears methodical, with whales frequently employing privacy transactions when transferring funds to new institutional investors.
This practice suggests a growing sophistication in how large holders manage their positions, using privacy tools not for illicit purposes but for legitimate security and confidentiality concerns as they transfer holdings to regulated entities.
The $97,300 Bitcoin price level has emerged as its most important technical support, backed by substantial on-chain evidence.
Market Support Levels and Wallet Concentrations
At this price point, 1.51 million distinct wallet addresses hold 1.49 million BTC, creating a dense concentration of potential buying pressure.
The clustering of this many wallets arxound a single price point typically acts as a strong psychological and technical barrier against further price declines.
The current wallet distribution pattern differs from previous market cycles in both scale and concentration. While Bitcoin has traditionally shown wallet clustering at round number price points, the current accumulation zone represents a more organic price level formed by actual buying activity rather than psychological trading barriers.
This suggests that many holders who bought at these levels have maintained their positions despite market volatility, creating natural market support.
Bitcoin Price Action and Technical Outlook
Bitcoin price has declined 3.4% in the past 24 hours to $95,000, part of a broader pullback that includes a 6.4% drop over the past week and 5.5% over two weeks.
These short-term declines come amid Bitcoin’s larger upward trend, with the asset posting a 123% gain over the past year. The current price weakness tests both technical support levels and holder conviction during the holiday trading period.
Trading volumes have remained steady through the correction, suggesting an orderly market despite the Bitcoin price decline.
The movement of large amounts of Bitcoin through privacy channels during this period adds another layer to market analysis, as these transactions could signal preparation for future institutional deployments rather than distribution to exchanges for selling.
