Bitcoin is suffering from losses of recent weeks to the point that the digital currency is trading only at around $7,200. However, if you are going to look at the bright side of things, transaction fee rate for Bitcoin is at its lowest since 2011 in the last three months. Could this be a sign that you should start buying Bitcoin?
The median transaction fee rate for Bitcoin was at its lowest on April 4 and 5. During those days, the transaction fee was at 6.86 satoshi/bytes (sat/B). The fee rate increased to 39.29 on April 30 but went down again. On Saturday, the transaction fee was at 9.43 and even went down to 8.86 on Sunday.
If you will compare the transaction fee during the start of the year, it was actually at 453.57 sat/B during New Year’s Eve.
This only means that you can transfer Bitcoin among different wallets for less the price. And this is one of the reasons why Bitcoin Cash decided to part ways from Bitcoin completely. What Bitcoin cash promised is a faster and cheaper alternative to Bitcoin.
SegWit has been responsible for the exponential adoption and the reduced transaction fee. Though there is only 28.34{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} of all transactions that made use of SegWit, the number is close to 38{4ede17fdd9b4ce8121d01fc4b54913fe84f8215aace504cc657695cefb5329ff} on Sunday. Further adoption of SegWit and Lightning Network can help solve scalability problems on Bitcoin. Though it is still in its early stages, the results are quite impressive so far.
Ben Verret tweeted that Bitcoin fees are lower than Bitcoin Cash in a six-hour period. Though it was only temporary, the question is if it is ever going to be a trend. And with Lightning Network in effect, this could potentially help Bitcoin with its issues.
There is no denying that Bitcoin is quite struggling for the past weeks. The cryptocurrency fell to $7,142 which is its lowest in the last 6.5 weeks. However, there is actually a reason for you to be happy if you are still holding on to your Bitcoin today. The chart shows a doji candle which basically means that the bears may be running out of steam. And also, there is a possibility of a short-term rally soon.
In addition to this, there are experts who believe that there could be whales that are manipulating the price of Bitcoin since it was able to hit around $19,000. According to their study, the dips are becoming less and less severe which could signify that the pump and dump scheme that brought about the bearish trends in 2018 is about to end.
Is it a good opportunity to invest in Bitcoin now that there’s lower transaction fee? Should you be investing considering the signs that there is an impending bull run soon? These are all questions lingering in today’s cryptocurrency world.
Are whales also just waiting for regulatory clarity before it enters the market? Considering the prediction by Tom Lee, and the indication that there are institutional investors looking to enter the crypto market, is it true that bears are running out of steam?
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