Bitcoin transaction fees have significantly decreased, reaching record lows not seen in a decade. This drop follows a surge in discussions around potential Federal Reserve rate cuts.
Record Low Bitcoin Transaction Fees
According to Glassnode, the average daily transaction fees on the Bitcoin network (14-day SMA) have fallen to 3.5 BTC, marking the lowest level since late 2011.
Escalating Social Sentiment Around the Fed
Mentions of the keywords 'Fed,' 'cut,' and 'rate' on social media have surged, with Santiment reporting that this is the highest level in the last 11 months. Such spikes in discussions may indicate an elevated sense of euphoria, commonly preceding local price tops.
Exchange Trends and Their Impact on Bitcoin
There has been a noticeable increase in Bitcoin supply on exchanges. Since June, the amount of BTC held on exchanges has risen by nearly 70,000 coins. This trend suggests that holders might be preparing to sell. Historically, rising exchange balances often precede selling pressure.
In the current market context, it is essential to monitor the lowered fees and increased social activity, as they could indicate potential shifts in price trends.
