The Community fears the worst, anticipating a market dump. But it was just an internal transaction.
Reddit lauds Bitcoin for its utility.
Someone moved approximately 100,000 Bitcoin this week—worth around $633 million at the time of the transaction—for a mere $0.26.
The transaction, carried out on April 1, was caught by the crypto community's resident vigilante, the Twitter account Whale Alert. Whale Alert scours public blockchains for huge crypto trades and publishes information about them on its Twitter page.
As pointed outby several Redditors, the transfer required neither identity checks nor trusted intermediaries, and, of course, cost only a few cents.
By contrast, customers of TransferWise—a popular method of remittance—must pay around $3,600 in fees to send $1 million (the maximum transferable amount). Furthermore, it would take approximately three days for that transaction to arrive.
People are taking their crypto off of exchanges
As with any massive transfer, the worry is that the recipient would dump all that Bitcoin on the market, causing the price of Bitcoin to sink.
Fears were allayed when Whale Alert revealed that the transaction was simply an internal transfer from crypto custody service, Xapo. This suggests that Xapo was just shuffling money around rather than preparing for a massive selloff.
It’s often a worrying sign when someone puts a huge amount of crypto into an exchange. But data frommarket intelligence firm Glassnode suggests that the outflow of Bitcoin from exchanges appears to be on the rise.
Glassnode noted a marked increase in Bitcoin withdrawals since Bitcoin’s price plummeted in the middle of last month. In fact, exchange balances hit their lowest ebb in eight months, it reported.
Despite the volatility, #Bitcoin holders appear to be withdrawing their funds from exchanges. Outflow has been increasing daily since March 18.