Bitcoin transfer costs fall to 2020 lows

Bitcoin transfer costs fall to 2020 lows

Bitcoin transaction fees hit a four-year low on July 7, falling to $38.69. Miners remain profitable due to reduced network difficulty and lower computational power needs.

The average fees associated with each Bitcoin transaction fell to their lowest level in four years on July 7 at $38.69, a figure last seen at the peak of the COVID-19 pandemic in 2020. 

The cost per Bitcoin (BTC) transaction for the day is determined by the miners’ revenue and the total number of transactions processed. On July 7, Bitcoin was trading above $58,200 when transaction costs came down due to two key factors: lower demand for block space and data volume.

Bitcoin miners processed 673,752 transactions over the Bitcoin network on July 7, according to Ycharts data. BTC represented 89.7% of the transactions, and the rest of the bandwidth was taken up by other protocols, such as Ordinals (0.7%), BRC-20 (4.1%) and Runes (5.4%).

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