Bitcoin recovered in October after hitting the bottom in September. BTC broke the record for the year by reaching the level of $ 13,200. At such a time and with the market focused entirely on the rise, Bitcoin transfers of about $ 1.2 billion caused great uncertainty in the market. So who or who is behind these transfers from Xapo wallet to unknown wallet?
According to the information conveyed by Whale Alert, following the installed crypto money transfer transactions, two separate transfers were made from the wallets of the crypto money wallet application Xapo to an unknown wallet. In the first transfer, 45,671 BTC, or 602 million dollars according to the instant rate, was transferred, while in the second transaction, 43,185 BTC, or 570 million dollars according to the instant rate, was transferred.
— Whale Alert (@whale_alert) October 26, 2020
There was also a great panic and uncertainty on Twitter regarding Bitcoin transfers, which totaled $ 1 billion 172 million. The comments made under the first transaction statement mostly focus on the possibility that whales are dumping. However, the opposite, a very positive development, could be the reason behind the relevant transfers.
Are Bitcoin Transfers Associated With PayPal?
Xapo is known as the “world’s most secure cold storage wallet” that directly serves institutional investors. Stating that it will provide cryptocurrency trading and storage services last week, PayPal may be the institution behind these transactions. PayPal has been rumored to be able to buy cryptocurrency firms like Xapo or Paxful Standard for storage. Another important rumor was that PayPal could buy BitGo. So now it is considered certain that PayPal will buy a cryptocurrency storage or payment company. Wences Casares, CEO of Xapo, is also one of the PayPal executives. This shows that $ 1.2 billion Bitcoin transfers can be directly related to PayPal.
However, the issue regarding PayPal is currently just a claim. The transfer may also consist of an OTC, over-the-counter trading transaction. Dump fears of users about this may not be very supportive. Generally, large transfers sent from wallets to exchanges are made for sale, while funds sent to unknown wallets are used for long-term investment.
Still, the reason for the $ 1.2 billion Bitcoin transfers seems to remain a mystery for a while.