{"id":15138,"date":"2022-12-04T22:27:48","date_gmt":"2022-12-04T22:27:48","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bitcoins-third-largest-wallet-changed-hands-but-onchain-data-shows-its-likely-the-same-owner-featured-bitcoin-news\/"},"modified":"2022-12-04T22:27:48","modified_gmt":"2022-12-04T22:27:48","slug":"bitcoins-third-largest-wallet-changed-hands-but-onchain-data-shows-its-likely-the-same-owner-featured-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bitcoins-third-largest-wallet-changed-hands-but-onchain-data-shows-its-likely-the-same-owner-featured-bitcoin-news\/","title":{"rendered":"Bitcoin\u2019s Third Largest Wallet Changed Hands, but Onchain Data Shows It\u2019s Likely the Same Owner \u2013 Featured Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Last year and during the first half of 2022, speculators assumed the third-largest bitcoin address was a \u2018mysterious whale,\u2019 even though the wallet had shown strong characteristics of being a cryptocurrency exchange. The address known as \u201c1P5ZED\u201d has since been replaced by another address, after the wallet started to transfer its entire bitcoin balance in mid-July 2022. The bitcoin address \u201c1LQoW\u201d is now the third-largest wallet today, and it\u2019s very likely that the owner of the 1LQoW wallet is the same entity that managed the 1P5ZED wallet. <\/strong><\/p>\n

The Third Largest Bitcoin Wallet Changed to a New Address, a Wallet That\u2019s Likely Controlled by the Same Owner<\/h2>\n

After bitcoin\u2019s price soared to new heights in November 2021, there was a significant amount of speculation<\/a> concerning the third-largest bitcoin wallet known as \u201c1P5ZED<\/a>.\u201d Rumors about the wallet plagued social media<\/a> and some people erroneously attributed<\/a> the wallet to Microstrategy\u2019s stash of BTC<\/a>.<\/p>\n

\"Bitcoin\u2019s
Bitcoin Address: 1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ<\/figcaption><\/figure>\n

Then after the rumors were debunked, blockchain observers noticed<\/a> that 1P5ZED moved all of its bitcoins<\/a> in mid-July. Blockchain records<\/a> show that by the end of June 2022, the 1P5ZED address was down to 0.01257 BTC<\/a>. In 2021, when Bitcoin.com News reported on 1P5ZED, a source with \u201caccess to blockchain analytics tools (Chainalysis and Ciphertrace) as part of their job function\u201d told our newsdesk:<\/p>\n

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There is an almost 100% chance that both addresses in your article, both 1P5ZED and 1FzWLk, belong to Gemini.<\/p>\n<\/blockquote>\n

The 1P5ZED wallet also had shown signs of exchange spending patterns like cluster spending. Furthermore, the block explorer oxt.me<\/a> highlights two annotations, which assume that the \u201c1P5ZED\u201d bitcoin address may have been tied to the exchange Bittrex.<\/p>\n

\"Bitcoin\u2019s
Bitcoin Address: 1LQoWist8KkaUXSPKZHNvEyfrEkPHzSsCd \u2013 This BTC<\/a> address is now the third-largest holder.<\/figcaption><\/figure>\n

However, following the mid-July and end-of-June removal of more than 132,000 BTC<\/a>, data still indicates that the wallet is still likely associated with the crypto exchange Gemini. Even if analysts cannot identify the exact owner of 1P5ZED, onchain data, clustering, and heuristics show that 1P5ZED simply changed hands (addresses), but the owner remains the same.<\/p>\n

Despite Speculation, Bitcoin\u2019s Third Largest Wallet Is Not a \u2018Mystery Whale\u2019 or \u2018New Market Player\u2019 \u2014 Onchain Data Points to an American-Based Crypto Exchange<\/h2>\n

The third largest bitcoin wallet today, \u201c1LQoW<\/a>\u201d has a balance of more than 140,000 BTC<\/a>, and the wallet is connected to 1P5ZED and \u201c1FzWLk<\/a>.\u201d As we noted in our prior reports, 1FzWLk transacted with 1P5ZED on numerous occasions and it transacted with 1LQoW as well. It seems that the now empty 1FzWLk wallet dispersed the funds to other addresses including 1LQoW. Data further shows that 1FzWLk\u2019s transactions were often connected with known Gemini exchange wallets and the current third richest bitcoin wallet<\/a> today 1LQoW<\/a>.<\/p>\n

\"Bitcoin\u2019s
Bitcoin Address 1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ, Bitcoin Address 1LQoWist8KkaUXSPKZHNvEyfrEkPHzSsCd, and Bitcoin Address 1FzWLkAahHooV3kzTgyx6qsswXJ6sCXkSR all have ties with each other.<\/figcaption><\/figure>\n

Per usual, social media posts and crypto publications identified<\/a> 1LQoW as a new \u2018mystery whale\u2019 or new mega player in the market. OXT researcher Ergo BTC<\/a>, tweeted about the address in July and August 2022. \u201c1LQoW was first seen a few weeks ago, receiving its first [transaction] in a batch withdrawal from Coinbase,\u201d Ergo tweeted<\/a> on July 19. \u201cIt\u2019s 2 outgoing [transactions] are back to 1FzWL, which implies that this address is at least linked and possibly co-owned by 1P5Zs\/1FzWL\/key rotation? In other words not \u2018selling.\u2019\u201d Speculating on whether or not it was Coinbase Custody, Ergo wrote<\/a>:<\/p>\n

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Coinbase Custody: Pros: By adjacency and first inflows into 1LQoW. Cons: The first seen on 1FzWL doesn\u2019t quite align with the Coinbase Custody announcement.<\/p>\n<\/blockquote>\n

Ergo also spoke about the bitcoin wallet 1LQoW on Aug. 2, 2022, when a lot of speculative reporting started to rise after the 1P5ZED myths prior. \u201cCrypto tabloids and clickbaiters have gone from \u20181P5Z is dumping all his coins\u2019 to \u20181LQoW is a new whale that bought $1.64B out of nowhere. \u2019lmao,\u201d Ergo tweeted<\/a>. Onchain data also confirms that 1LQoW is not a new \u2018mega whale\u2019 or \u2018market player\u2019 that just suddenly took the third-largest bitcoin wallet reigns from 1P5ZED.<\/p>\n

1LQoW is most likely an American-based crypto custodian or exchange, and we can\u2019t say for 100% certain that it is a Gemini-associated BTC<\/a> wallet. Cons include the fact that the wallet does not match Gemini\u2019s bitcoin reserve data<\/a> hosted on cryptoquant.com and other reserve data sites like Glassnode. The stats from cryptoquant.com\u2019s Gemini-associated bitcoin reserve data shows Gemini\u2019s stash is around 136,923 BTC<\/a>. The third-largest BTC<\/a> address 1LQoW holds approximately 140,664 BTC<\/a> (as of 2:00 p.m. ET on Dec. 4, 2022). Coinglass.com data<\/a> shows Gemini\u2019s BTC<\/a> reserves stash is estimated to be around 132,102 BTC<\/a> today, which is also a discrepancy.<\/p>\n

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\nTags in this story
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1FzWLk<\/a>, 1LQoW<\/a>, 1P5ZED<\/a>, 3rd largest address<\/a>, 3rd largest wallet<\/a>, American Crypto Custodian<\/a>, Analysis<\/a>, annotation<\/a>, Bitcoin<\/a>, Bitcoin (BTC)<\/a>, Bitcoin Wallet<\/a>, bitcoin whale<\/a>, Bittrex<\/a>, Block explorer<\/a>, BTC Reserves<\/a>, BTC wallets<\/a>, BTC Whale<\/a>, Coinbase<\/a>, coinbase custody<\/a>, collecting BTC<\/a>, crypto exchange<\/a>, custodian<\/a>, data<\/a>, Ergo BTC<\/a>, Ergobtc<\/a>, Exchange<\/a>, Exchange Reserves<\/a>, first seen<\/a>, flag<\/a>, Gemini<\/a>, Largest BTC wallets<\/a>, Onchain<\/a>, Onchain analysis<\/a>, Onchain data<\/a>, OXT Research<\/a>, OXT researcher<\/a>, oxt.me<\/a>, rumors<\/a>, Speculation<\/a>, speculators<\/a>, third largest wallet<\/a><\/div>\n<\/div>\n

What do you think about the relationship between wallets 1P5ZED, 1FzWLk, and the current third-largest bitcoin wallet 1LQoW? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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