Bitcoiner Spends Over $500K in Fees To Land in Halving Block

On-chain data reveals that this Bitcoiner spent 7 BTC (worth over $500,000) to complete one of the last transactions before the Bitcoin halving occurred. The user transferred only 0.000011 BTC. This was no isolated transaction, as some users also spent large fees to complete their Bitcoin transactions.

Why the Sudden Surge in Transaction Fees?

Blockchain explorer BlockCypher reveals that these users completed these transactions in block 840,000, the final block added to the Bitcoin network before halving sets in.

The 840,000th block saw over 37.625 BTC (worth over $2.41 million) spent in transaction fees. The metric is significantly higher than the preceding blocks, which saw between 0.8 BTC and 2 BTC expended as transaction fees. The on-chain data added that 1,359.9 BTC were traded within the block.

The sudden surge differed from earlier transactions done on the blockchain. An earlier report shows that a Bitcoiner traded almost 6,800 BTC for a minimal fee of $0.33.

This abnormal increase in transaction fees may be attributed to Bitcoin miners’ flight to join the final block before the halving or likely earn the first BTC mining reward of 3.125 BTC post-halving.

The Historic Bitcoin Halving Has Occurred

The Bitcoin halving is a deflationary mechanism that reduces the number of BTC created and added to the circulating supply. It occurs once every four years. The fourth halving event occurred hours ago. Miners will receive a block reward of 3.125 BTC over the coming four years.

History shows that BTC’s value often jumps to incredible heights months after the halving. For example, the 2020 halving saw BTC’s price go from $6,900 to $69,000 a year later. Market experts are optimistic that the trend will repeat itself in the coming months.

Note that the Bitcoin Runes has also gone live after the halving event. Created by Bitcoin developer Casey Rodarmor, the protocol will allow users to tap into memecoins and other tokens on the Bitcoin network. Bitcoin-based projects like PUPS have revealed plans to join the protocol after its launch. According to a blockchain analytics platform, over 1470 Runes have been etched on the network.