- Bitcoin posted strong costs after the halving.
- BTC remained in a bear trend despite rising over 1.7%.
The Bitcoin [BTC] Halving, which is expected to reduce miners’ compensation, has taken place. Contrary to expectations, fees reached a record high after the halving. However, there are indications that this may be temporary.
Bitcoin records the highest average transaction costs
The Bitcoin halving took place in the early hours of Saturday, April 20. However, by the end of that day, network costs had risen to a record high, contrary to expectations from the halving.
Analysis of Glass junction revealed that on April 20, fees rose to over 1,257 BTC, which was equivalent to over $81 million at the time.
This was the highest daily fee in years, a significant increase for the platform and its miners.
Source: Glassnode
Further examination of the average fees paid on the network indicated an increase to approximately $128 per transaction on April 20.
Also take a look at the rate overview Crypto feesBitcoin showed the highest costs in the last seven days. The average fee was over $20.2 million, compared to Ethereum [ETH] nearest average of almost $5 million.
However, at the time of writing, daily fees had dropped. According to Glassnode, the cost dropped to 344 BTC, which is equivalent to approximately $22.3 million.
This significant fluctuation in rates coincided with a decline in the number of daily new users.
Bitcoin addresses fall to the lowest level in more than a year
While rates reached record highs, the number of daily new Bitcoin addresses moved in the opposite direction.
AMBCrypto’s analysis of Glassnode revealed a notable decline in address creation. At the time of writing, the number stood at 259,431, down from the range of 300-400,000 days earlier.
Source: Glassnode
This trend suggested that a significant influx of new users was not the cause of the increase in rates. Instead, Runestone development likely played a role, with the subsequent rate drop supporting this hypothesis.
An increase in fees and new users indicate increased activity, which may positively impact the BTC price.
BTC goes back to $66,000
On April 21, Bitcoin experienced a slight dip but quickly recovered, as shown by the daily price chart.
Read Bitcoin’s [BTC] Price forecast 2024-25
AMBCrypto’s look at the chart revealed that BTC was trading at around $66,200 at the time of writing, reflecting an increase of 1.7%.
However, the rally was not yet complete as the trend was still bearish. If this price range is exceeded, it would indicate a shift to a bullish trend.
Source: TradingView