Bitcoin: Transfer of $1.5 billion for a negligible fee, dazzling or alarming?

A transfer of 35,000 BTC, equivalent to $1.5 billion, was recently executed for an insignificant fee amount. Yet Bitcoin fees are often criticized for their exorbitance. Should we worry about the impact of this transaction on the market, or rejoice about the minimal fee?

Someone Transferred 35,000 Bitcoin for a Minimal Fee

Transaction fees on Bitcoin are known to be quite high compared to other cryptos. And yet, a recent event has proven otherwise. Bitcoin Magazine reported on X that an address transferred 35,049 BTC for a fee of $3.21. This is a transfer of a huge amount of BTC worth $1.5 billion.

Someone just moved 35,049 #BTC worth $1.5 billion for a transaction fee of $3.21

The magic of #Bitcoin ✨ pic.twitter.com/emSP5dZ160

— Bitcoin Magazine (@BitcoinMagazine) January 31, 2024

The transfer of this astronomical sum led to almost non-existent fees. Is this the magic of Bitcoin and blockchain technology? Facilitating transactions and reducing fees. Moreover, in traditional finance, there is a rise in banking fees of about 2.5 to 3%. The leading crypto could profit from the situation to the extent that the BRICS are considering using it as a lethal weapon. Indeed, the countries of the BRICS are currently exploring Bitcoin’s potential to break the hegemony of the US dollar.

Impact on the Market?

This transfer could have a significant impact on the overall market sentiment. The spread of the news could encourage many to perform transactions in Bitcoin.

However, it is suggested that this reduction in fees may be due to the volatility and inherent instability of Bitcoin. Plus, such an occurrence remains exceptional.

At the time of writing these lines, the price of Bitcoin is stabilizing around $42,157. It shows an increase in trading volume of 13.87% over 24 hours, according to CoinMarketCap data. Meanwhile, analysts Tim Draper and Anthony Scaramucci anticipate a projection of $250k and $170k for Bitcoin by 2025. This explosion could be explained in particular by the next halving.