The recent Bitcoin halving on Friday has reignited discussions surrounding the cryptocurrency’s high transaction fees, particularly in light of the Runes Protocol’s debut.
While some view the surge in fees as a drawback, others argue that it could ultimately benefit the broader crypto market by prompting a rebound.
🤑 High transaction #fees associated with #Bitcoin have been a hot topic since the successful Friday #halving. Much of this surge appears to be related to the #RunesProtocol debut. The #FUD related to $BTC costs should be beneficiary to #crypto bouncing. https://t.co/MdT0Khc02a pic.twitter.com/xg0K2mKrxx
— Santiment (@santimentfeed) April 22, 2024
According to analyst Ali Martinez, the current halving cycle marks the first time the available Bitcoin supply has dwindled to around 4.6 million BTC.Â
For the first time ever, the available #Bitcoin supply decreased to about 4.6 million $BTC before this halving cycle began.
Why does this matter? The halving further slashes miner rewards, accelerating the scarcity of new #BTC. As supply tightens, and even if demand remains the… pic.twitter.com/wGVmsW0K8t
— Ali (@ali_charts) April 22, 2024
This reduction in supply, coupled with the halving’s impact on miner rewards, is expected to further tighten the supply of new BTC. Consequently, even if demand remains constant, this scarcity could exert upward pressure on prices.
Recent data from Lookonchain reveals notable movements by a whale in the Bitcoin market. The whale withdrew 800 BTC (equivalent to $52.84 million) from Binance within the past 5 hours.Â
A whale withdrew 800 $BTC($52.84M) from #Binance in the past 5 hours.
This whale sold 4,556 $BTC($302.3M) from Mar 15 to Mar 22 before.
Address:
1F3Cpgben5uRAMptnPRL9coAbKp9YmWqfb pic.twitter.com/RpKRj8cuNK— Lookonchain (@lookonchain) April 22, 2024
This action follows a previous sale of 4,556 BTC ($302.3 million) between March 15 and March 22, suggesting strategic positioning amidst market dynamics.
Bitcoin ETF Net Inflow Remain Positive For Consecutive Trading Days
Additionally, insights from Spotonchain highlight positive trends in Bitcoin ETF net inflows as of April 22, 2024. The net inflow remains positive for the second consecutive trading day, indicating sustained investor interest.Â
🚨 $BTC #ETF Net Inflow Apr 22, 2024: +$62M!
• The net inflow remains positive for the second trading day.
• The single-day outflow of #Grayscale Bitcoin Trust $GBTC was only $35M, one of the lowest outflows.
• Is the selling wave by Grayscale coming to an end, or is this… pic.twitter.com/stHJfF8zWh
— Spot On Chain (@spotonchain) April 23, 2024
Notably, the single-day outflow from Grayscale Bitcoin Trust (GBTC) was relatively low at $35 million, underscoring confidence among investors despite recent market fluctuations.
The intersection of these factors underscores the ongoing evolution of the Bitcoin market post-halving. While concerns persist regarding transaction fees and supply dynamics, investor sentiment remains cautiously optimistic.Â
As the crypto landscape continues to adapt to changing conditions, market participants closely monitor developments to navigate potential opportunities and challenges in the evolving landscape.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!