Continuous selling by miners has caused transaction fees to fall to a four-year low!

Bitcoin transaction fees have fallen to their lowest point in four years. On July 7, the average cost of each transaction was only $38.69. The reasons behind this phenomenon, the impact, and the future market direction are worth exploring in depth.

📉 Fees hit a four-year low:

On July 7, Bitcoin transaction costs fell to $38.69, the lowest level since 2020. The main reason is the reduction in demand for block space and data volume, which has reduced user costs. On that day, Bitcoin miners processed a total of 673,752 transactions, of which 89.7% were Bitcoin transactions, and other protocols such as Ordinals (0.7%), BRC-20 (4.1%), and Runes (5.4%) accounted for the rest.

Miners are still profitable:

Despite the decline in transaction fees, miners remain profitable, with miner revenue accounting for 1.14% of total transactions on July 7. Due to the reduction in network difficulty, miners use less computing power to process transactions. At the time, Bitcoin price was over $58,200, showing a unique situation of low fees and high market value coexisting.

Miner Capitulation and Market Trends:

CryptoQuant CEO Ki Young Ju recently mentioned on Twitter that the continued selling by miners, investors remain bullish in the long term, but do not take too much risk in the short term. The current daily mining value is 72% of the annual average mining value, a historical mark that suggests the market may not be completely out of the woods yet. Ju predicts that the market may remain sluggish in the next 2-3 months, but the long-term outlook remains positive.

Recommendations: Short-term: Bitcoin prices may continue to fluctuate in the short term due to the continued selling by miners.

Long-term: Despite the uncertainty in the short term, Bitcoin's fundamentals remain strong in the long term. For patient investors, this is a potential buying opportunity.

Technical analysis: Pay attention to key support and resistance levels, and set reasonable stop loss and take profit points

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