Bitcoin Transaction Fees Hit Yearly Low as Price Nears All-time Highs

Bitcoin Transaction Fees Hit Yearly Low as Price Nears All-Time Highs

As the price of Bitcoin (BTC) approaches a new all-time high, the cost of sending Bitcoin has fallen to its lowest level in nearly a year. According to data from Bitinfocharts, the average transaction fee on the Bitcoin blockchain has fallen to $0.73, the lowest level since August 2023 when it briefly dropped to $0.64. It has since risen slightly to $0.903, or about 0.000014 BTC.

Bitcoin is currently trading at around $66,300 per coin and surged to $70,000 on Monday after Trump’s keynote speech at the Bitcoin 2024 conference. Trump pledged to establish a national “strategic Bitcoin stockpile” if elected, boosting investor optimism. However, it has failed to break above the $70,000 level and is down 4.2% in the past 24 hours.

Bitcoin transaction fees typically rise when the network is congested. During periods of high activity, users must compete for transaction processing, allowing miners who verify transactions and mint new coins to charge higher fees for expedited processing.

Despite recent low fees, the Bitcoin network has experienced significant fee increases in the past. For example, in April, the cost of sending Bitcoin skyrocketed to a record $128 per transaction. This increase was largely due to the launch of Runes, a new standard for creating tokens on the blockchain, which clogged the network with activity.