On 20th April, due to the Bitcoin Halving Event, a sudden jump is seen in the transaction fees of Bitcoin. There is an increase in the block fees on the day of halving where the market hit the transaction fees with $128 on the Fourth Halving event. Market experts predicted that the Bitcoin price will surge with positive trends after the Halving Event.
The day before the Bitcoin Halving event the total fees recorded $78.3 million hammering Ethereum by 24 times more in Crypto fees. On the Bitcoin Halving Event, a massive amount of 37.7 Bitcoins (worth $2.4 million) was paid to a Bitcoin miner through BTC in the form of a block numbered 8,40,000.
This block became very popular with a new token standard called Runes which launched at the time of Bitcoin Halving. People especially the fans of meme coins and Non-Fungible Tokens (NFTs) were eager to Participate in the Runes. There were a total of 3050 transactions recorded at the time of Halving in that block and each user paid around $800 on average.
The transaction fees paid to the miners remained high until block 840,200 and then suddenly dropped to a much lower level, afterward. Interestingly, the miners initially didn’t feel the impact of the half-a reduction in block rewards i.e. from 6.25 to 3.125 Bitcoin because of high fees. However, miners are feeling the effect of halving as of now the fee decrease. In recent days, Bitcoin transaction fees have been higher than Ethereum with an average of $17.8 million in 7 days.
After the Halving Event, the price of Bitcoin isn't drastically affected. It is currently surfing the market at $64,840 with an increment of 1.5%. Some experts such as JPMorgan have warned the market about the price drop after the Bitcoin Halving Event. They were accurate and optimistic about the future of the Crypto Market.
Previous Halving Events Bitcoin’s price initially went down just after the Halving but shot up unexpectedly over the years in 2012, 2016, and 2020, respectively. The CEO of Crypto.com says, “Bitcoin's future looks good in the long term. Although there’s some selling before halving”
Even though the Crypto Market shows a sudden downslope in the Transaction fees after reaching $128. The market will likely show an upward trend in the coming days as predicted by some experts. Earlier also there were fluctuations in the market after the Halving in the previous Halving Events.
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