According to data provided by Glassnode, Bitcoin miners have experienced a notable uptick in fees, totaling 1,258 BTC. This rise in transaction fees aligns with a decrease in the generation of fresh Bitcoin addresses, falling to 260,838.
It was anticipated that the most recent Bitcoin halving event would cut block rewards by 50%, lowering the returns for miners. However, the adoption of Casey Rodarmor’s Runes protocol has countered this expectation.
Despite Bitcoin’s total transaction fees reaching 1,258 BTC, there’s been a slight downturn from the recent peak. According to Mempool data, the average transaction fee now sits at 34.86, down from the April 20 high of 128.45. This decrease marks a 72.86% drop from Saturday yet showcases a remarkable 2.65K% increase compared to a year ago.
In times of network congestion, like the 2017 crypto surge, Bitcoin transaction fees typically soar, nearly hitting $60. Yet, the drop in new Bitcoin addresses could be linked to the discouraging impact of steep transaction fees on prospective users entering the network.
Bitcoin Halving: Muted Reaction, Subsequent Surge
Bitcoin’s market reaction to the highly anticipated halving event was muted but has subsequently gathered momentum. According to statistics from CoinMarketCap, Bitcoin is currently trading at $66,178, up 1.76% from the previous intraday trading session. Long-term expectations for Bitcoin remain positive despite warnings from financial analysts like JPMorgan about a possible price drop following the halving.
However, Leading asset management company Bitwise has identified past patterns in Bitcoin’s price trajectory. Following the 2012 halving, BTC experienced a modest 9% increase in the month directly after the event. However, it surged impressively by 8,839% in the subsequent year. Similar patterns were witnessed after the 2016 and 2020 halvings, further solidifying this trend.
Additionally, Kris Marszalek, CEO of Crypto.com, has expressed comparable views regarding the price of BTC. He emphasized that although BTC may encounter selling pressure before halving events, the overarching perspective remains bullish over the long haul.
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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
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