- There is a developing spike in Bitcoin transaction fees
- Transaction fees spiked in 2017, 2021, and 2023 with corresponding price rallies
- There is a developing transaction fee spike trailing the recent Bitcoin rally
A developing spike in Bitcoin transaction fees indicates a potential rise in the price of Bitcoin, according to Benjamin Cowen, founder of IntoTheCryptoverse. In a recently uploaded video, Cowen showed that the Bitcoin transaction fee metric is rising significantly for the second time this year.
In his analysis, the IntoTheCryptoverse founder spotted transaction fee spikes in 2017, 2021, and 2023 with corresponding price rallies. However, the 2023 spike was unique for being established in a pre-halving year. Furthermore, Cowen noted another developing spike trailing the recent Bitcoin rally that saw the top cryptocurrency reach a yearly high of nearly $38,000, based on data from TradingView.
Cowen’s most recent observation on transaction fees indicates the metric is initiating a downward movement. The analyst believes the pullback is because people are starting to speculate in the altcoin market, with a few coins reflecting bullish momentum. According to him, if the drop continues, it could signify a waning interest among users and lead to a notable price consolidation.
While the pattern is still in its early stages of development, Cowen thinks a confirmation of the drop in transaction fees could turn out to be negative for the crypto market. His reason is that Bitcoin leads the bull market, and if people get too focused on the altcoin market, that could lead to Bitcoin showing weakness, which would subsequently lead to a significant drop in the altcoin market.
Therefore, the renowned crypto analyst noted that Bitcoin interests don’t have to wane so quickly for the altcoin move to be more durable. Hence, Bitcoin needs to stay elevated for a long time rather than slowly falling back down.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.