“Increasing Bitcoin Transaction Fees – What Will the 2024 Halving Bring?”

Bitcoin Transaction Fees – Declining Trend with Periodic Surges

Data from Glassnode shows that Bitcoin (BTC) transaction fees in 2024 are following a general downward trend, with noticeable periodic surges. The average transaction fees in Bitcoin have significantly increased compared to 2023, currently ranging from 1 to 2 million dollars per day, marking a significant rise from the previous year.

Inspections and Fee Surges

A particularly high number of inspections, mainly from November to December 2023, contributed to a significant increase in Bitcoin transaction fees. During this period, these fees even surpassed those charged on the Ethereum network in the last two weeks of December and a brief period on February 3rd. Ethereum has hence regained its dominance in fees compared to Bitcoin.

Average Block Fee and Historical Patterns

Currently, the average block fee on the Bitcoin network is around 0.40 BTC, remaining close to the relative lows of the cycle, previously hovering around 0.10 BTC. Historical patterns in Bitcoin fees emerge in the context of an upcoming halving, suggesting a link between fee increases and a new bull market.

Fee Increases and Approaching Halving

According to experts at Glassnode, the average block fee has even exceeded the block reward by up to six times during Bitcoin’s history, considering three events in 2023. The approaching halving implies that transaction fee increases may align with a potential rise in Bitcoin’s value post-event, which is a significant aspect for investors and cryptocurrency enthusiasts to monitor.