Summary
Bitcoin’s price is hitting highs not seen since 2021 as the halving event approaches, but transaction fees are down significantly compared to late last year. This is due to lower Ordinals activity and most trading happening through ETFs. Transaction fees tend to increase when the network is busy, but with the upcoming halving event, miners will have to work harder to earn the same amount of Bitcoin. Transaction fees are currently at $7.01, much lower than the peak of $62.77 in April 2021. Will transaction fees remain low as Bitcoin’s price continues to rise?
Key Points
1. The average cost to send Bitcoin is currently $7.01 worth of BTC, down substantially compared to late last year when the price was lower.
2. Ordinals activity, which allows non-financial data to be inscribed onto the Bitcoin blockchain, is not as high as it was in December, resulting in lower transaction fees.
3. With most of the on-chain activity focused on traders buying from newly approved exchange-traded funds (ETFs), the network is less busy, leading to lower transaction fees.