A new Bitcoin superpower emerged, but it turned out to be a disappointment

The useful thing about blockchain technology is that you can find out exactly what each wallet address on the network is doing. But this is more complicated than you think, because it is often not clear who the wallet addresses belong to. This can lead to misunderstandings. An address appears to have invested a lot of money in Bitcoin (BTC), but the reality is somewhat different.

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The Bitcoin whale comes out of nowhere

According to BitInfoCharts, a wallet address has increased from nearly 110 BTC to over 11,268 BTC since the beginning of November. When the address was created in late October, the contents were already worth almost $4 million.

But in November this enormous amount was gradually added – the address is now worth more than 426 million dollars. At the time of writing, this puts it in 70th place among the largest wallet addresses – just above is one of Binance’s (smaller) wallet addresses.

BitInfoCharts assumes the coins were purchased on the same day they were shipped. The corresponding prices range from $34,200 to $37,700. The average price is around $37,200. According to the analysis site, the investor is in the green at around $9 million, which represents a return of around 2%.

The Bitcoin whale is a downer

Ever since BlackRock filed for a spot ETF, investors have been speculating wildly about when they will encounter a new whale. These buyers could be large institutions trying to get ahead of the market when purchasing Bitcoins for their funds. This may have been one of the reasons for the 50% increase since September.

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But this mysterious address is less interesting than originally thought. CoinDesk has contacted blockchain analysis service CryptoQuant. The wallet address is a new cold storage address from the crypto exchange BitMEX. The coins have landed at the new address from no less than 450 different addresses, but it is only an internal move. So at least some of the ETF hype is unjustified.

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