As Bitcoin (BTC) hovers around $64,000, well below its peak in April but slightly above key demand areas, on-chain activity has significantly slowed down, leading to a sharp decline of 80% in total Bitcoin transaction fees.
According to data
Block entry
In the network
Bitcoin
Transaction fees dropped significantly to $192,000. These fees typically reflect network activity, showing a current lack of it.
In contrast, during the cryptocurrency boom of 2017, fees skyrocketed, reaching close to $60 per transaction during network congestion.
The current sluggish activity indicates a market in stagnation, with decreased interest from cryptocurrency traders and investors in the largest cryptocurrency by market value.
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Cryptocurrency market sees losses – Bitcoin adjustment continues
Additionally, the recent reduction in transaction fees and mining rewards after the halving event may lead miners to increase their BTC sales on cryptocurrency exchanges.
A report by CryptoQuant states that miner outflows have reached a two-month high, putting downward pressure on the Bitcoin price.
Bitcoin is currently trading at $63,750, down 24% in the past 3.53 hours. Despite these short-term losses, Bitcoin has still risen by over 50% year-to-date, reflecting its overall upward trajectory for 2024.
