As the halving day gets even closer, Bitcoin transaction fees have jumped a whopping 400%, after hitting $2.30, a figure that has not been observed in the past ten months. In the past few days, BTC price has surged nearly to $10k, pacing up investors rush to acquire more of the asset before its scarcity sets a new record.
Back in June 2019, BTC transaction fees hit $5, whereby the transaction fees dropped to stabilize below a dollar till recent. All through the coronavirus pandemic, the transaction fees have been relatively low until it clicked in most crypto investors’ minds, ‘2020 halving is around the corner’.
This is a similar trend that was observed in days approaching the previous halvings, which later preceded a bull run that set a new all-time high. Large buyers are being observed in most exchanges, with the latest Bitcoin transactions depicting whales are in a buying spree.
Coincidentally, the Bitcoin hash rate has also skyrocketed, almost surpassing the all-time high, however, the market price has dropped slightly below the $9000 mark, trading at around $8,706.71 at the time of writing. Although 4% down in the past 24-hours, the digital asset has added over $1,100 in the past seven days, representing around 12.83%.
With the market cap having reached over $160 billion at the time of reporting, the asset holders are getting excited. Expectedly, the daily asset volume is higher than any altcoin’s market valuation, as it is at $46 billion, with ETH and XRP market capitalizations at $22 billion and $9.4 billion respectively.
High Bitcoin Transaction Fees a Sign of More Activity Pre-Halving
With the traditional stock market seeming not a fertile place to invest in during this world crisis, most retail and institutional investors are now looking at the crypto space that is thronged with immeasurable prospective outlooks.
Apart from the biotech stocks that are being favored since they are working on a possible COVID-19 vaccine, few other stocks can have a return similar to the one being observed in the crypto market. The high transaction fee is one sign that the blockchain is getting overwhelmed by a beehive of activities.
Last week’s bull rally aroused buyers to increase the rate of accumulation which is evident in most crypto exchanges. How things unfold in the next few days and weeks will be interesting, since it is a sphere marred with any possibility, due to the high volatility.