As the crypto market crashes, Bitcoin transaction fees rise to $47.
Around 130,000 transactions are also awaiting confirmation.
Price charts flash only red numbers and steep percentage drops today after Bitcoin fell by 15% in the last 24 hours to $52,144.
For some, this is the day to get out of the market. The exodus has caused a traffic jam on the Bitcoin blockchain.
Around 130,000 transactions await the confirmation on the blockchain according to data. And Bitcoin’s average transaction fees are now at a four-month high of $46.88, up by over 200% since April 4, when the average transaction fee was $15.56.
The Large Bitcoin bottleneck
David Gerard, a blockchain critic chalked today’s unprecedented congestion to Bitcoin holders running “to the exits.”
Darius Sit from QCP Capital, blames the crash to a rumor that the US Treasury is about to chase after the large financial institutions for laundering crypto. If that rumor is true, traders can be selling their crypto in fear that the price might fall even lower.
To make things worse, the power outages in China’s Xinjiang province, a hotspot for Bitcoin mining, also happened recently. Fewer operational Bitcoin miners have placed an upward price pressure on the normal transaction fee.
Bitcoin’s hashrate, (an indicator of the effective computing power of the global Bitcoin network), fell from 145 exahash last April 16 to 105 exahash a day after. It is currently at 120 exahash per second.
While other traders run for the exits, others no doubt look at today’s crash as an opportunity to grab Bitcoin at bargain prices.
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