Crystal Blockchain Analytics unveiled figures that show an increased value of Bitcoin transferred through the dark web, though the amount of Bitcoin was less.
A study from Crystal Blockchain Analytics on May 19 shows that the total USD value of Bitcoins transferred on the dark web rose by 65% in Q1 2020, despite a decline in transactions during the same period in 2019.
The report which was released on May 19, 2020 shows that the total value of Bitcoin in USD transferred through the dark web rose by 65 percent in the first quarter of 2020.
The Crystal Blockchain Analytics reports claims that the total value of Bitcoin (BTC) transacted showed a 340 percent growth over three years with 65% in 2020, though there was a decline in Bitcoin transaction during this time last year.
The report detailed a decline in amount of bitcoin transacted in comparison to Q1 2019 against Q1 2020. But then there was an increase in the value of Bitcoin transacted over this period in 2019.
In Q1 2019 there was a total of 64,000 BTC from both the incoming and out-going transaction while in Q1 2020, the total incoming transactions decreased to 47,000 Bitcoin and the out-going transactions to 50,000 Bitcoin.
When it comes to the value of bitcoins during these periods, there was a total of $411 million in Q1 2020 as against $384 million in Q1 2019.
The report claims that the reduced amount of Bitcoin transacted in Q1 2020 was largely because of the increase in popularity of altcoins on Dark Web.
Other reasons mentioned on the report includes: Market Capitalization and Mass Adoption of Bitcoin.
The report revealed that the total bitcoin sent out by dark-web users to exchanges that require ID verification reduced to 13% in Q1 2020 as against the 24% in 2019.
“There are several possible explanations for this drop, but exchanges without verification requirements were likely used less and substituted with mixing services.”
This suggests an increase in the use of the services of mixer to hide transactions. This increased to 20% in Q1 2020 as against one percent in Q1 2019.
Bitcoin is a common tool used by dark web actors and most perpetrators of illicit transactions utilizing the services of mixers to hide transactions.
Most crypto and cyber crimes are mostly done utilizing Bitcoin to hide identities.