The post Bitcoin Transaction Fees Plummet to Four-Year Lows Amidst Bitcoin Miner’s Continued Selling appeared first on Coinpedia Fintech News
Bitcoin transaction fees have reached their lowest point in four years, with the average cost per transaction dropping to $38.69 on July 7. Despite the reduced fees, Bitcoin miners continue to see profits thanks to decreased network difficulty and lower computational power requirements.
Lowest Fees Since 2020
On July 7, the cost of Bitcoin transactions dropped to $38.69, a level not seen since 2020. This reduction is largely due to a decrease in demand for block space and data volume, which has led to lower costs for users.
Bitcoin miners processed a total of 673,752 transactions on July 7, with 89.7% being Bitcoin transactions. Other protocols such as Ordinals (0.7%), BRC-20 (4.1%), and Runes (5.4%) made up the rest.
Despite the lower fees, miners remained profitable, with miner revenue for the day making up 1.14% of the total transaction volume. This consistency in revenue is due to the reduced network difficulty, allowing miners to use less computational power to process transactions.
At that time, Bitcoin was trading at over $58,200, highlighting a unique situation where lower fees coincide with a high market value.
Bitcoin Miner Capitulation Continues
CryptoQuant’s CEO, Ki Young Ju, recently tweeted about this ongoing miner capitulation. He advised investors to stay long-term bullish but warned against taking excessive risks in the short term. His insights highlight the current cautious sentiment among industry experts.
#Bitcoin miner capitulation is still ongoing.Historically, it ends when the daily average mined value is 40% of the yearly average; it's now at 72%.Expect the crypto markets to be boring for the next 2-3 months. Stay long-term bullish but avoid excessive risk. pic.twitter.com/OCsiI57KPo
— Ki Young Ju (@ki_young_ju) July 9, 2024
Historically, this phase ends when the daily average mined value is 40% of the yearly average. Currently, it’s at 72%, indicating we may not be out of the woods yet. This historical marker has been a reliable indicator for the end of such phases, signaling potential stability and recovery in the market.
Ju predicts that the crypto markets could remain dull for the next 2-3 months as this process continues. However, the long-term outlook remains positive.