Bitcoin network fees soar to three-month high

Posted: September 23, 2023

• Transaction charges on the Bitcoin community climbed to a brand new excessive through the week.
• This occurred regardless of the decline in community exercise throughout that interval. 

Complete charges paid to finish transactions on the Bitcoin [BTC] community rallied to a three-month excessive of $7 million this week, on-chain knowledge supplier IntoTheBlock famous in a latest publish on X (previously Twitter).

Complete Bitcoin charges proceed to climb and have reached a three-month excessive of $7M this week! pic.twitter.com/H46FjuriUE

— IntoTheBlock (@intotheblock) September 22, 2023

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Miners took no possibilities

The payment surge spurred miners on the Bitcoin community to get rid of a few of their coin holdings to e-book earnings. An evaluation of Bitcoin’s Miner to Alternate Movement on a 7-day shifting common confirmed that the metric climbed to a one-week excessive of 1,343 BTC on September 21.

This recommended that miners had been shortly offloading their cash on cryptocurrency exchanges as charges jumped.

Supply: CryptoQuant

The Miner to Alternate Movement metric measures the quantity of BTC flowing from miners to exchanges. When this metric rallies, miners promote extra BTC than they’re mining. It typically means that miners are bearish on the worth of BTC and need to promote their holdings.

BTC’s Miner Reserve – which measures the variety of cash held in affiliated miners’ wallets – declined throughout the interval beneath overview, confirming coin exits from miners’ wallets. 

After peaking at a excessive of 1.844 million BTC when the coin briefly traded above $27,000, the Miner Reserve metric plummeted and dropped to 1.841 million BTC by 22 September, in keeping with knowledge from CryptoQuant.

Supply: CryptoQuant

Charges went up regardless of the autumn in community exercise

An evaluation of consumer exercise on the main blockchain community throughout the interval into consideration revealed that whereas it noticed a hike in charges, it skilled a lower in community exercise.

In keeping with knowledge from Glassnode, the week was marked by a decline in new demand, because the day by day depend of latest addresses that appeared for the primary time in a transaction on the community cratered by 18%. 

Likewise, the variety of distinctive addresses that accomplished transactions involving BTC additionally dropped by 12%. 

Supply: Glassnode

Learn Bitcoin’s [BTC] Value Prediction 2023-2024

The drop in community exercise on the blockchain was noticed in a discount within the variety of day by day Ordinals inscriptions made through the week. Information retrieved from a Dune Analytics dashboard revealed a 53% decline in day by day inscriptions made on the Bitcoin community.

Supply: Dune Analytics

At press time, the main crypto asset exchanged palms at $26,550. The coin returned to the $26,000 worth area after its momentary stint above $27,000 on 19 September.