Bitcoin’s transaction fees have sharply declined by 64%, mirroring a slowdown in network activity. This drop coincides with increased selling pressure from miners, pushing Bitcoin’s price below $64,000. The cryptocurrency market currently finds itself in a subdued phase reminiscent of September 2023, with Bitcoin trading at $64,310, marking a modest 0.36% decrease. Trading volume has also dipped by 7% over the past 24 hours.
The notable reduction in total transaction fees on Bitcoin’s network now stands at $19.2 million, down significantly due to decreased network utilization, which contributes to the prevailing bearish sentiment.
Adding to these dynamics, CryptoQuant has reported a peak in Bitcoin sold by miners on exchanges, reaching a two-month high. Factors such as diminishing mining rewards and lower transaction fees have intensified the selling pressure on Bitcoin.
Despite these challenges, Bitcoin continues to attract attention from institutional investors. Michael Dell, CEO of Dell Technologies (DELL), a company valued over $100 billion, recently hinted at interest in Bitcoin. Dell’s tweet on Thursday, stating “Scarcity creates value,” prompted a response from MicroStrategy’s executive chairman Michael Saylor, who affirmed, “Bitcoin is Digital Scarcity.” This exchange further stirred interest in Bitcoin.
Significant movements among large holders, or whales, have also been observed. Recently, a transfer of 10,500 BTC worth approximately $675 million occurred from an undisclosed wallet to another unidentified wallet. Furthermore, 800 BTC, valued around $51 million, were moved from another undisclosed wallet to Kraken.
Analyzing Bitcoin’s trajectory, it is evident the cryptocurrency is trading below the critical support level of $65,800 and has now slipped below $64,000. This breach suggests a potential correction of 8%-12% toward the $60,000 mark. For bullish sentiment to prevail, maintaining momentum is crucial. The next significant milestones for Bitcoin are $66,524 and potentially $69,904, should the upward trend continue.