The Bitcoin (BTC) fees are going through lots of ups and downs, with finally the Core network lowering it considerably on April 28. In December last year, the usage of the BTC network went up and simultaneously its mining fees also rose to $40-60 per 225-byte transaction.
Apart from the drop in the transaction rate and network fees, there is one more reason for cryptocurrency investors to celebrate. Bitcoin’s value has increased 36% in one month indicating that Tom Lee’s prediction might, after all, come true.
All through last year, the ups and downs in the fees of BTC continued, which had a major impact on the mindset of cryptocurrency enthusiasts who had to wait for a long time for completion of a transaction. At the same time, they had to pay heavy fees for using a BTC network. In January this year, BTC made changes in its front page descriptions. The “peer-to-peer transactions and “fast” terms were removed and the term “fraud protection” replaced “low processing fees.” These changes continued to upset the Bitcoin network users.
However, things started changing in favor of investors as the BTC fees dropped simultaneously along with its transactions (tx) per day. The average median BTC fee as of now for a 225-byte transaction is $1.90 USD.
‘Crypto Winter’ Led To Decline In BTC Network Demand
Some people believe that the last four months were sort of a hibernation period or “Crypto Winter” for the cryptocurrencies as their popularity and value came down suddenly making the mainstream investors lose their interest. And this is possibly the reason why the demand for the BTC network also went down. However, there is a group that believes that with the adoption of transaction batching and Segregated Witness (Segwit), the issue of congestion time and high network fees have been remedied.
It seems that cryptocurrencies are indeed having a good time this year so far. BTC was selling for roughly for $6,816 per unit at the start of April this year but increased to around $9,300 per unit (36%) by the end of the month. It also indicates that the belief of Fundstrat’s Tom Lee that BTC will trade at $25,000 by this year end may yet come true, though only time will tell.