Bitcoin Witnesses Post-Halving Surge in Average Transaction Fee

Bitcoin Witnesses Post-Halving Surge in Average Transaction Fee

According to new data from Bitinfocharts, the Bitcoin network has recorded a significant spike in average transaction fees following the recent halving. On the 14th of May, the average Bitcoin transaction fees spiked by more than 55% in a single day, recording an 11-month high of $5.1. Although it quickly dropped to about $3.5 two days later, it seems to have settled at $4.

Reports show that Bitcoin’s average transaction fee at the start of the year was $0.28. Hitting the $4 mark means that the transaction fee has surged as much as 1300% in just 5 months.

Although Bitcoin transaction cost has rallied significantly, the Bitcoin community has not been dissuaded—in the slightest bit—from using the cryptocurrency.

Mati Greenspan, the founder of Quantum Economics, explained that although the average Bitcoin transaction fee has surged, it is still significantly cheaper than bank or PayPal transfers.

Bitcoin transaction fees are expected to remain significantly lower compared to bank transfers considering that Bitcoin has a fixed fee regardless of transaction sizing unlike PayPal or banks which charge in percentage. For example, a $20,000 PayPal transfer will likely cost $780 while that same worth of Bitcoin transfer will still cost $4.

Historically, Bitcoin’s fees increase every time the network begins to experience heavy usage. This only means that Bitcoin is recording a heavy influx of users which is very beneficial for its value.

BTCUSD – Daily Chart

Bitcoin (BTC) Value Forecast — May 20

BTC/USD Major Bias: Bullish

Supply Levels: $10,000, $10,550, and $11,500

Demand Levels: $9,200, $9,000, and $8,500

Bitcoin—against all odds—continues to maintain a sideways momentum. We’re faced with yet contracting-channel dead-end. Yesterday, BTC recorded a high of $9,900 before dropping close to the $9,500 pivot once again. We are likely to see this range-bound momentum persist for a while before we could see a break towards the $10,550 resistance.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.