The popular surveillance tool, Whale Alert, detected the huge transactions on April 1st. The number of transactions was 101,857 BTCs, which at the time was the equivalent of $633,535,530.
The most impressive aspect of this $634 million transaction was the fees paid by the whale. What is equally impressive in this particular transaction is the fees that were paid. According to information from Blockchain.com, the total amount was SAT 3935. To put that in perspective, it's $0.26, since Bitcoin is currently trading at approximately $6,650.
According to Blockchain.com's data, this transaction, which is undoubtedly one of the largest in history, will have cost only 0.00003935 SAT, or 26 cents when transferred.
Was it the reason of Bitcoin price rising?
Some members of the community feared that this massive amount could end up in a crypto currency market where, if sold, it could trigger a serious price drop. However, Whale Alert quickly pacified the situation by clarifying the true nature of the transaction.
The large Hong Kong-based cryptocurrency custodian, Xapo, made an internal transfer with these funds.
Without necessarily establishing a link between the two events, 30 minutes after this transfer, the price of Bitcoin began to rise, increasing by 8.50% in just a few hours.
After tracing the transaction, Whale Alert reported that the transaction was linked to an internal transfer from Xapo. The whale is therefore not an individual, but a company, which explains the size of the sum involved.
According to a Bloomberg report published in 2018, it takes about two days for Xapo's customers to have their assets redistributed to them. It should also be noted that Xapo is one of the founding members of the association Balance. The latter aims to launch its own cryptocurrency to serve as a 'single global digital currency' called Balance. Indeed, Xapo uses ultra-secure processes such as fingerprint scanning and pulse measuring devices to ensure that amputated hands cannot be used to unlock facilities.
Other Bitcoin Whale transactions
In December 2019, more than 43,000 Bitcoins were removed from the popular Bittrex cryptocredit exchange and transferred to an unknown portfolio. At the time, such a large amount of BTCs had a value of over $313 million. However, the transaction fee was just as high, $1.
In addition to highlighting the efficiency of the Bitcoin network and especially the cost of transactions, whales are particularly monitored by the crypto-community.
Indeed, movements of this magnitude can have a significant impact on the price variations of Bitcoin and altcoins in the short term and sometimes even reverse a trend.
Written by Laetitia, Project Manager
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