Key Points:
- Bitcoin transaction fees peaked at $128 on the halving day, then dropped to $8-$10.
- Bitcoin’s price rose moderately to $66,266 post-halving, showing a 2% increase.
- Runes protocol launch at halving led to high demand and $800 average fees.
The financial landscape of Bitcoin has undergone significant changes since the fourth Bitcoin Halving on April 20. Notably, on the day of the halving, Bitcoin transaction fees soared to an unprecedented high, with the average fee reaching $128. The fee spike occurred at the same time as a significant halving event. During this event, ViaBTC received a record-breaking payment of 37.7 Bitcoin, amounting to approximately $2.4 million. This highlighted the exceptionally high cost of transactions during peak times.
However, this surge in transaction fees could have been more-lived. By April 21, fees dramatically fell to a more manageable range of $8 to $10. Typical post-halving volatility, which often follows initial surges in transaction costs with significant declines, is reflected in this reduction as the market stabilises.
Bitcoin’s $66,266 Post-Halving High: A Market Overview
Beyond fees, the halving event has also influenced Bitcoin’s market price. Since the halving, there has been a moderate 1.5% increase in Bitcoin’s value, pushing it to $64,840. As of the most current data, the price has seen a further ascent, reaching $66,266, marking a 2% increase. This gradual but steady rise in price underscores the bullish sentiment echoed by Crypto.com CEO Kris Marszalek, who suggests that despite potential short-term selling pressures, the long-term outlook for Bitcoin remains positive.
JPMorgan’s Caution vs. Bitwise’s Optimism
The financial community has offered mixed reactions to these developments. JPMorgan has expressed caution, warning of a potential further slide in Bitcoin prices following the halving. In contrast, Bitwise has a more optimistic view, suggesting that although there might be a modest dip in the immediate aftermath, the following year could see exponential gains for Bitcoin’s value.
Runes Protocol Launch: $800 Fees and High Demand
Concurrent with the halving, the team launched the Runes protocol, marking its debut at the historic halving block. This new token standard has been a catalyst in driving high demand from memecoin and NFT enthusiasts, contributing to the high fees recorded during the halving. With 3,050 transactions within the halving block, the average fee per user reached a staggering $800, highlighting the intense competition for block space.
Bitcoin Miners and Network Changes
After the halving, transaction fees have normalised to about 1-2 Bitcoins per block, significantly lower than before. This has had a palpable impact on miners who feel the pinch of the reduced earnings. This shift signals a new phase for Bitcoin’s economy, necessitating adjustments from various stakeholders within the ecosystem.
