Bitcoin Fees Plummet 95% as BTC Price Recovers from US Government Panic
Bitcoin was not affected by the U.S. government sell-off this week, but BTC price action remained under pressure.
Bitcoin $26,641
The company struggled to recover from fresh losses on May 11 after a false alarm about U.S. government sales spooked the market.
Analyst denies US government selling Bitcoin
Data from Cointelegraph Markets Pro and TradingView show that at the time of writing, Bitcoin is trading at $27,400 against the U.S. dollar.
The pair had suffered a flash sell-off the day before, rising as high as $26,850 following a sell-off of confiscated BTC claimed to be held by the U.S. government.
This was later refuted, but for the already sensitive crypto market, the damage was done.
Among traders, Jackies described the local lows as a “scam” while predicting lower levels are imminent.
“When the move feels like a scam and the deal feels like a scam, then treat it like it,” he tweeted.
"I do expect a fall sooner or later. I'm not sure yet how deep, but am prepared to act quickly if necessary."
Trader Anbessa also confirmed that he is looking for further downside, eyeing a target area around the $25,000 mark.
Meanwhile, financial commentator Tedtalksmacro called May 10 “just another day for crypto.”
In a Twitter summary of the day’s events, he added that U.S. inflation data had delivered for risk asset longs, suggesting continued declines in the coming months.
Bitcoin Fees Drop to Below $2 for Next Block
In a ray of hope for Bitcoin supporters, there have been significant changes in on-chain transaction fees over the past 24 hours, with these fees dropping significantly after reaching levels that caused widespread uproar.
At the time of writing, the next block fee rate from Mempool.space’s live numbers is 47 satoshis ($1.80) per byte.
According to monitoring resource BitInfoCharts, on May 10, average fees fell below $15 — a drop of more than 50% from the day before.
In reaction, Checkmate, the lead on-chain analyst at Glassnode, chided those who have called for code changes to prevent future fee hikes.
As Cointelegraph reported, fees surged as the Ordinals inscription massively increased on-chain activity and demand for block space.
"After 24 hours, the average fee paid per block has returned to ~$1.0 BTC per block. Imagine arguing about changing the rules of Bitcoin due to a short term fee spike because people were using the chain in ways you disagree with," he tweeted alongside a chart.
“Trying to change the rules is an attack, not an inscription.”
C3 Tip: The views, thoughts and opinions expressed here are the author's own and do not constitute investment advice or recommendations. Every investment and transaction involves risk.
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