Bitcoin Transaction Fees Experience Significant Drop Post-Halving ๐
After reaching an all-time high average of $128 on April 20, Bitcoin transaction fees saw a significant drop just one day later, coinciding with the fourth Bitcoin halving. As of April 21, medium-priority transaction fees on the Bitcoin network fell to a range of $8-10, providing relief to users. This drop in fees came after a surge the previous day, where Bitcoin recorded $78.3 million in fees, surpassing Ethereum by over 24 times. This change in transaction fees has implications for miners and users alike.
Bitcoin Halving Block Includes Record Fee Paid to Miners ๐ฐ
- The Bitcoin halving block at height 840,000 included a record fee of 37.7 Bitcoin (equivalent to $2.4 million) paid to Bitcoin miner ViaBTC, marking a significant milestone in the networkโs history.
- Enthusiasts of memecoins and non-fungible tokens (NFTs) drove demand for block 840,000, with 3,050 transactions included, resulting in an average fee of under $800 per user.
- Following the halving, fees per block fell to around 1-2 Bitcoin, impacting miners as they adjust to the reduced block subsidy from 6.25 Bitcoin to 3.125 Bitcoin.
Bitcoin Surges After Halving ๐
- While Bitcoin did not initially react to the halving event, the leading cryptocurrency has since seen gains, trading at $66,266 and up by almost 2% over the past day.
- Analysts, including Bitwise, remain bullish on Bitcoinโs long-term performance post-halving, citing historical price patterns that show significant gains in the year following the event.
- Crypto.com CEO Kris Marszalek also maintains a positive outlook on Bitcoinโs future, anticipating selling pressure in the short term but bullish sentiment in the long term.
Hot Take: Bitcoin Fees and Price Post-Halving ๐
The significant drop in Bitcoin transaction fees post-halving provides relief to users, while miners adjust to reduced block rewards. The surging price of Bitcoin following the event indicates positive sentiment in the market, with analysts expecting long-term gains. Despite short-term selling pressure, the overall outlook for Bitcoin remains bullish in the wake of the fourth halving.
Sources:
1. [Mempool.Space](https://mempool.space/)
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