As Bitcoin (BTC) hovers near the $64,000 mark, well below its peak in April but slightly above a key support level, on-chain activity has significantly slowed down, resulting in a 90% decrease in total Bitcoin transaction fees.
According to data from Inside Bitcoins, transaction fees on the Bitcoin network have dropped to $192,000. These fees typically reflect network activity and indicate a lack of current network usage.
In contrast, during the cryptocurrency boom of 2017, fees skyrocketed, reaching a peak of nearly $60 per transaction during network congestion.
The current sluggish activity indicates a stagnant market, with decreased interest from cryptocurrency traders and investors in the largest cryptocurrency by market capitalization.
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Additionally, the recent decrease in transaction fees and reduced mining rewards following the halving event may lead miners to increase their BTC sales on cryptocurrency exchanges.
A report by CryptoQuant states that mining machine sales have reached a two-month high, putting downward pressure on Bitcoin prices.
Bitcoin is currently trading at $63,750, experiencing a 24% drop in the past 3.53 hours. Despite these short-term losses, Bitcoin has still risen over 50% this year, reflecting its overall upward trajectory towards 2024.
