BTC Approaches $70K, Bitcoin Network Fees Double

Bitcoin [BTC] has gained momentum over the past week, and the increase in transaction fees is a clear reflection of this increase.

However, the increase in fees is not simply due to the increase in Bitcoin price but is also influenced by a slight increase in the number of Ordinals transactions, which was observed throughout the week.

How are the overall trends in fees playing out amid recent price increases?

Bitcoin transaction fees are double

Data from IntoTheBlock shows that Bitcoin experienced a notable increase in transaction fees this week, doubling compared to last week. One of the main factors contributing to this increase is BTC’s upward price volatility, bringing the price closer to the $70,000 threshold. In turn, this price increase also led to a sharp increase in trading volume, reaching its highest level in many months.

Bitcoin fees more than doubled this week, with Ordinals-related transactions hitting a monthly high. pic.twitter.com/YXh9oMMYSK

— IntoTheBlock (@intotheblock) March 9, 2024

Volume chart analysis from Santiment indicates that on March 5 and 6, trading volume surpassed $100 billion. The last time such volume levels were observed was in November 2022.

According to IntoTheBlock, the increase in fees comes not only from the sudden increase in price but also from the recent increase in Ordinals transactions.

How have Ordinals’ transactions and fees been recently?

Source: Dune Analytics

A review of Ordinals trading figures over the past week shows a significant increase. Starting from around 48,000 words engraved daily at the beginning of the week, the number increased to more than 93,000 by March 8.

An examination of the fees paid for Ordinals transactions during this period indicates that the average daily fee was around 8 BTC. This translates into a typical fee that contributed about $3.8 million to total network fees for the week.

Furthermore, information from Dune Analytics shows that to date, Ordinals’ transaction fees have contributed more than $434 million.

Overall, how are Bitcoin fees trending?

Source: Glassnode

Analysis of Bitcoin fee trends this week shows that initially, daily fees were around 46 BTC. By March 5, the daily fee had increased to over 103 BTC. However, by the end of the week, the daily fee had dropped to around 40.7 BTC. Despite a slight decrease over the weekend, chart analysis shows that daily fees are still higher than last week.

Related: Bitcoin Surges to $70,000 with Positive On-Chain Momentum

Bitcoin nears record of 70,000 USD

Source: Trading View

Bitcoin daily time chart analysis indicates that the price is approaching the $70,000 level. As of press time, BTC is trading at around $69,400, up more than 1%. The uptrend continues, as shown by the Relative Strength Index (RSI) crossing the 75 level.

This also signals that Bitcoin is still in overbought territory. A potential move into the $70,000 price range could trigger a new spike in volume, possibly leading to further increases in trading fees.