The transaction has reiterated crypto advocates’ arguments regarding convenient low transaction fees
An anonymous Bitcoin whale moved a whopping 10,250 BTC to another unknown wallet earlier today. Bitcoin Block Bot, an automated ledger tracker that monitors large Bitcoin transactions, sent out an alert that the transaction, worth $95 million, was conducted with a mere transaction fee of 74 cents.
The multi-million dollar Bitcoin transaction was conducted by one of the richest known bitcoin wallets.
BitInfoCharts has revealed that the wallet held 16,662 BTC before the transaction, making it the 43rd largest known Bitcoin wallet in the world. It was also reported that the anonymous wallet has a history of transactions with large amounts of bitcoins from at least as early as April 18 this year.
The wallet did not transact the huge amount of Bitcoin to any crypto exchange, and is thus unlikely to be sold in the open market.
Interestingly, the wallet’s last three transactions have sent bitcoin amounts worth less than $10 to unknown accounts.
Reports suggest that the whale involved could be an early adopter who is trading bitcoins OTC (over-the-counter). It is also being speculated that the involved wallet could be moving Bitcoin across wallets in the interest of security and management.
Another possibility being explored is that the entity behind the transfer is a cryptocurrency exchange, custody provider or institution that is managing digital assets on behalf of its clients.
With a massive amount of bitcoins in its possession, the anonymous wallet holder is eligible to be called a ‘ crypto whale’. Such crypto whales are often accused of Bitcoin price manipulation, as they can cause the price of the cryptocurrency to fall by selling large amounts of bitcoins.
Whales usually move such gigantic amounts of Bitcoin between exchanges, custodial services or just transfer the amount between their wallets.
The transaction is yet another example of the low transaction fee charged in crypto transfers. By contrast, banks would charge a considerable fee to send huge amounts of money. Big money transfers through banks may attract fees of up to 1% or more of the amount being sent for each transaction.
Such a huge transaction has occurred in multiple instances in recent times. Just last week, whales moved a total of 122,857 BTC, worth S1.2 billion, by splitting them up into two transactions.
Low transaction fees were yet again the talking point in these transactions, costing a fee of just $0.48 and $1.57 respectively.