• As the bull market fades, Bitcoin transaction fees fall to 2020 levels

  • Today, the average transaction fee for Bitcoin is less than $4.

    Bitcoin’s average transaction fee reached $62.78 on April 21. Over the previous three months, the Bitcoin network’s computational power has been dwindling. Now, the average transaction cost on Bitcoin is $3.92, a significant decline from the all-time high of $62.78, achieved on April 21 this year.

    According to BitInfoCharts, the last time transaction costs were as low as they are today was on December 23 of last year, when Bitcoin’s average transaction price was $3.61. Whatever perspective you take, Bitcoin has had a tumultuous year.

    April’s enormous average charge was truly unique in the industry’s 12-year history. Only on December 23, 2018, when the average transaction cost was $52.18 did Bitcoin come close to the previous highs. On April 14, Bitcoin reached an all-time high of $64.3k. The average transaction charge that day was $29. About a week later, Bitcoin’s price plummeted to roughly $55,000, with record transaction fees of $62.79 and more than 130,000 unprocessed transactions on the network. High fees are roughly correlated with increased activity. As everyone wanted to get into Bitcoin, the demand for miners outpaced the supply. As a result, fees soared. When investors hurried to get out, the price of the stock jumped even more. The news around Bitcoin is a little less spectacular these days.

    According to Nomics, the world’s most popular cryptocurrency is currently priced at $33,672 per Bitcoin, and while this represents a significant drop from its golden days in mid-April, it is still up 2.37% from yesterday. Things took a turn for the worst for Bitcoiners in mid-May, when three Chinese payment groups reaffirmed their support for the Chinese Central Bank’s 2017 prohibition on financial firms engaging in cryptocurrency transactions. After the announcement, Bitcoin lost 30% of its value, but the negative news from China didn’t stop there. Since then, China has been cracking down on Bitcoin mining activities around the country. State-issued shutdown orders have been issued for miners in both Xinjiang and Sichuan. Some say China restricts the usage of major cryptocurrencies in favor of the digital yuan, which can now be exchanged into cash at 3,000 ATMs across Beijing. Bitcoin’s hash rate is currently at 97.53 Ehash/s, the lowest it has been since May 24 2020, when the network recorded rates of 93.5 Ehash/s, according to BitInfoCharts.

    Bitcoin appears to be in a condition of immobility.

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