- A new wallet address accumulating over 10,000 bitcoin since November has been identified as an internal transfer by crypto exchange BitMEX.
- This transfer aligns with BitMEX’s move to newer wallet types, supporting SegWit for efficient transactions and lower fees.
BitMEX’s Strategic Internal Wallet Transfer
The crypto community was abuzz with speculation regarding a new wallet address that rapidly accumulated over 10,000 bitcoins (BTC) since the start of November. However, the mystery has been resolved, with on-chain analytics firm CryptoQuant confirming that this address belongs to the well-known crypto exchange BitMEX.
Dispelling Speculations of New Entity Buying Bitcoin
Initial speculations suggested that the wallet could belong to a new entity making significant bitcoin purchases, particularly amidst numerous spot bitcoin exchange-traded fund (ETF) filings in the U.S. However, CryptoQuant’s analysis indicated that the wallet, identified by the address bc1qchctnvmdva5z9vrpxkkxck64v7nmzdtyxsrq64, is, in fact, a new cold wallet for BitMEX. Cold wallets, known for their enhanced security, are types of cryptocurrency custody not connected to the internet.
BitMEX’s Shift to New Wallet Formats
BitMEX’s internal transfer is part of its transition to newer wallet types. Specifically, the exchange is migrating most of its bitcoin holdings from the older 3BMEX format to the newer bc1qmex format. The latter supports Segregated Witness (SegWit), a protocol upgrade that allows for more efficient bitcoin transactions and the potential for lower transaction fees.
Details of the Internal Transfer
The largest single transfer to this new address was 566 BTC. The address appears on BitMEX’s latest proof-of-reserves holdings, published on November 28. CryptoQuant’s report noted that the bitcoins were transferred from a total of 450 addresses, all of which also appeared on BitMEX’s Proof-of-Reserves report and share the characteristic bc1qmex prefix, further confirming their association with BitMEX.
Implications for the Bitcoin Ecosystem
As of Thursday, the wallet was ranked as the 74th largest holder of bitcoin, according to data from Bitinfocharts. This internal transfer by BitMEX highlights the ongoing efforts by major crypto exchanges to enhance transaction efficiency and comply with regulatory standards, such as proof-of-reserves, that bolster transparency and trust within the cryptocurrency ecosystem.
The revelation of BitMEX’s internal transfer to a new wallet format, accommodating over 10,000 BTC, dispels earlier speculations of a new major bitcoin buyer. This move by BitMEX signifies a strategic step towards adopting more efficient and secure transaction technologies, reflecting the continuous evolution and maturation of the cryptocurrency industry.