Bitcoin transaction fees dropped to their lowest level in four years, with the average cost per transaction falling to $38.69 on July 7. This significant decrease in fees has not deterred Bitcoin miners, who continue to profit due to reduced network difficulty and lower computational power requirements.
Table of Contents
Bitcoin Transaction Fees Drop to Lowest Since 2020
On July 7, Bitcoin transaction fees reached $38.69, marking the lowest point since 2020. This fee reduction is primarily attributed to a decreased demand for block space and lower data volume, leading to reduced user costs.
On that day, Bitcoin miners processed a total of 673,752 transactions, with Bitcoin transactions accounting for 89.7% of the total. Other protocols such as Ordinals (0.7%), BRC-20 (4.1%), and Runes (5.4%) made up the remaining percentage.
Despite the lower transaction fees, Bitcoin miners have maintained profitability. Miner revenue for the day constituted 1.14% of the total transaction volume. This continued profitability is due to the reduced network difficulty, which allows miners to process transactions with less computational power.
At that time, Bitcoin was trading at over $58,200, creating a unique situation where low transaction fees coincided with a high market value.
Bitcoin Miner Capitulation Continues
CryptoQuant’s CEO, Ki Young Ju, recently highlighted the ongoing miner capitulation. He advised investors to remain bullish in the long term but to avoid taking excessive risks in the short term. His insights reflect the current cautious sentiment among industry experts.
https://twitter.com/ki_young_ju/status/1810713273995555259
Historically, the end of such phases is indicated when the daily average mined value is 40% of the yearly average. Currently, it stands at 72%, suggesting that the market may not have stabilized yet.
This historical marker has been a reliable indicator of potential stability and recovery. Ju predicts that the crypto markets could remain subdued for the next 2-3 months as this process unfolds. However, the long-term outlook remains optimistic.
Conclusion
To conclude, Bitcoin transaction fees dropped to a four-year low, providing users with cost savings while miners profit from decreased network difficulty. Despite the current miner capitulation, industry experts like CryptoQuant’s CEO, Ki Young Ju, remain optimistic about the long-term outlook, predicting potential market stability and recovery in the coming months. As the crypto market navigates this period, the blend of reduced fees and sustained miner profitability paints a hopeful picture for Bitcoin’s future.
- Don’t Forget more News and Research articles at
- https://techironed.com/