Leading cryptocurrency Bitcoin (BTC) It turned out that while the price was fixed, the transaction fees on the network were also negatively affected. While wallet addresses on the Bitcoin network are constantly increasing, it appears that the network has remained relatively quiet and transaction fees have decreased. Although the network crashed especially in the 2017 rally, this is not the case at the moment, and the crash is avoided thanks to the new solutions introduced, no matter how much the volume increases.
Seen from below on the Bitcoin network
The bull market bitcoin Although there was a minor threat to transaction fees on their network, it was avoided and solutions like the Lightning Network took the situation under control. For now, the transaction fees on the Bitcoin network have dropped to the lowest level of the year and reached the points before 2021. In reality, this can be interpreted as a sign that the bull market is about to end. The hash rate drop, the price drop, and all the declining metrics indicate that the BTC network is not very busy and therefore the demand is declining. Bitcoin transaction fees were 50% higher than in July 2021.
By looking at the data prepared by Arcane Research, you can see how transaction fees have decreased. The transaction fee is currently around $ 3 on average. In April, this price was $ 61.
So how will this affect the price of Bitcoin?
Although at first glance this metric indicates the end of the bull market as indicated above, the situation may be different.
In the above chart, the amount of BTC supply in the stock markets is shown in yellow and it is seen that this rate has decreased significantly recently. While this is considered positive for the price, the recent gap in the network is actually believed to be due to investors withdrawing their BTC to cold wallets.
In other words, the low transaction fees on the network are believed to be due to the fact that investors are transferring their BTC to cold wallets to maintain their BTC for the long term, not because there is no demand on the network. Although this data is seen as a sign of the end of the bull season when viewed alone, when combined with other data, it is actually a sign that the bull season may continue in earnest.
* No investment advice.