What is the significance of a 64 decrease in Bitcoin fees within a week
Bitcoin (BTC) has seen a decline in price, hovering around $64,000 and far below its all-time high in March. This bearish trend has resulted in a decrease in on-chain activity and a significant drop of over 60% in total Bitcoin transaction fees.
Data from blockchain and cryptocurrency analytics platform IntoTheBlock reveals that Bitcoin’s total transaction fees have plummeted by a staggering 64%, reaching $19.2 million. The decline in transaction fees indicates a lack of activity on the network. In contrast, fees can spike during periods of congestion, as seen during the 2017 crypto boom when average fees reached nearly $60 per transaction.
The current slowdown in activity suggests a period of low interest and boredom among crypto traders and investors in trading Bitcoin, the flagship decentralized finance (DeFi) asset. Furthermore, the combination of declining transaction fees and reduced crypto mining rewards following the Bitcoin halving earlier this year could lead to an increase in BTC sold by miners on crypto exchanges.
CryptoQuant recently reported that the amount of Bitcoin sold by miners on exchanges has reached a two-month high, which, coupled with factors like reduced mining rewards and lower transaction fees, has exerted significant selling pressure on the price of Bitcoin.
Currently, Bitcoin is trading at $63,750, representing a 3.53% decline in the past 24 hours and a 4.84% drop over the previous seven days. However, it has still gained 53.56% so far this year, despite an accumulated loss of 8.85% on its monthly chart.
The low transaction fees in the Bitcoin network reflect the current bearish sentiment in the crypto market. However, it’s important to remember that trends in this industry can change unexpectedly. Therefore, conducting thorough research is crucial when making investment decisions.
Disclaimer: The information provided in this article should not be considered investment advice. Investing in cryptocurrencies carries risks, and your capital is at risk.
