Bitcoin owners are using cryptocurrency mixers three times more often than they were nine months ago.
Mixed cryptocurrency Transactions are also known as 'CoinJoins'. They involve mixing services by grouping many transactions together before sending the correct amounts to their final destinations. In doing so, users can obscure the connection between the sender and recipient in each transaction.
Here, CoinJoins are accounting to more than 4 percent of all Bitcoin Transactions, according to a report from blockchain data firm LongHash.
When measured against the total monthly Bitcoin transactions, the number of CoinJoin transactions over the past 30 days have increased by about 300 percent the volume it was back in August 2018.
The data was provided by Adam Fiscor, the CTO of the company that runs Wasabi Wallet, a product that aims to deliver higher levels of anonymity to Bitcoin users. It shows that CoinJoin transactions have reached their highest level since 2013-14.
And LongHash suggests that the highs were a result of high developer activity and CoinJoins being implemented in the popular Blockchain.com wallet.
LongHash identified CoinJoin transactions using two criteria. “[First] the transaction has at least two outputs of equal value and [second] the value of the outputs is less than or equal to the value of the inputs,” the report reads.
Bitcoin is often thought to be private thanks to its pseudonymity, while in fact, it's not truly is.
With CoinJoins becoming more popular, governments around the world begin to step up their monitoring of crypocurrency transactions on blockchain, with law enforcement agencies often using specialist companies to pursue and track hackers and criminals dealing in the digital coins.
Although privacy coins have been touted as an alternative to BTC, they are experiencing pushback in some countries. Officials in France for example, have suggested that they should be banned altogether, while China has enforced an anti-anonymity regulations that are purportedly designed to contribute to the industry’s healthy development.
In the meantime, Bitcoin is above $5,000 again.
Bitcoin hasn’t jumped over that price since October 2017. As the world’s most valuable cryptocurrency, Bitcoin has experienced a brutal bear market since December 2017. During that span, it lost as much as 84 percent of its value.
With its price again up, many people believe this could be the start of bitcoin’s next parabolic move.
The most notable incident that triggered it, was when one mysterious buyer managed to increase its price by 20 percent in just 6 hours.
The gain was speculated as a result of an order worth about $100 million spread across U.S.-based exchanges Coinbase and Kraken and Luxembourg’s Bitstamp, said Oliver von Landsberg-Sadie, chief executive of cryptocurrency firm BCB Group.
“There has been a single order that has been algorithmically-managed across these three venues, of around 20,000 BTC,” he said.
“If you look at the volumes on each of those three exchanges – there were in-concert, synchronized, units of volume of around 7,000 BTC in an hour.”