Bitcoin Network Fees Double as Price Nears $70,000
The Bottom Line
Bitcoin network fees have doubled as the BTC price approaches the $70,000 mark. This increase is not solely due to the price increase, but also due to a slight increase in ordinal transactions over the past week.
Bitcoin Network Fees Increase
Data from IntoTheBlock shows that Bitcoin has seen a notable increase in transaction fees this week, which has doubled compared to the previous week. A major factor for this increase is the upward movement of the BTC price, which is now approaching the $70,000 mark. This price increase, in turn, led to a significant increase in transaction volume, which reached its highest level in months.
Ordinal Transactions and Fee Development
An analysis of the ordinal transactions over the past week shows a clear increase. With about 48,000 daily entries at the beginning of the week, the number of daily entries rose to over 93,000 by March 8th. The average daily fee during this period was about eight BTC. This means that the ordinal fees contributed about $3.8 million to the total network fees of the week.
Development of Total Bitcoin Fees
The analysis of the Bitcoin fee trend of the week shows that it started with about 46 BTC in daily fees. Around March 5th, the daily fees rose to over 103 BTC. However, by the end of the week, the daily fee had dropped to around 40.7 BTC. Despite the decline in fees towards the weekend, the analysis of the chart showed that there were more daily fees compared to the previous week.
Bitcoin Approaching the $70,000 Mark
At the time of publication, the BTC price was around $69,400, which is an increase of over 1%. The bullish trend continued, as the Relative Strength Index (RSI) of over 75 shows. This also signals that Bitcoin continues to be in the overbought zone. The potential breakthrough into the $70,000 price zone could trigger a new increase in volume and thus lead to a further increase in fees.
Our Assessment
The doubling of Bitcoin network fees is a clear sign of the ongoing popularity and use of Bitcoin. However, it is important to be aware that higher network fees also mean higher transaction costs for users. Therefore, Bitcoin users should carefully monitor this development and take it into account in their transactions.
Sources: IntoTheBlock, Dune Analytics, Glassnode, Trading View, Adewale Olarinde, Saman Waris.
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Price | $95,450.00 |
| 24h % | -0.79 % |
| 7d % | 2.75 % |
| 30d % | 40.17 % |
| 60d % | 54.39 % |
| 1y % | 140.06 % |
| Market Cap | $1,889,003,661,458.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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