Over $484M BTC Moved for Just $0.33 in Fees

A Bitcoiner moved 6,791 BTC (worth over $484 million) to a newly created Bitcoin wallet hours before the halving event. Although the reason for the transaction is unknown, what made the trade unique was the transaction fee expended, which was less than a dollar. The assets transfer coincides with when BTC’s value jumped above $65,000 in anticipation of the Bitcoin halving event.

Bitcoin Network Processes Transaction Below $1

According to the blockchain explorer BitInfoCharts, the Bitcoin network currently processes transactions for approximately $16. However, the aforementioned Bitcoiner processed the transaction for only $0.33.

For the Bitcoin network to process a transaction with a minimal transaction fee, it implies that the network experienced an efficiency in block size at the time of the transaction. Whenever there is a moderate inflow of trades into the Bitcoin blockchain, transactions are processed faster and at a cheaper rate.

Conversely, network fees increase and transactions are processed slower when more transactions are piled up on the network.

Bitcoin Trades Above $64k

At press time, Bitcoin traded at $64,100, representing a 4.2% surge from a depth of $61,800 recorded over the past 24 hours. Still, the asset’s current price is over 5% lower than its value seven days ago.

Source: CoinStats

Hours before the halving occurred, BTC’s value tanked to a depth of $59,600. This price movement is not shocking. Historic data shows that BTC’s price often displayed significant volatility a few days before the Bitcoin halving event. The quadrennial event (occurring every four years), which occurred earlier today, saw the number of mined BTC reduce from 6.25 BTC to 3.125 BTC.

Bitcoin’s creator, Satoshi Nakamoto, introduced this deflationary mechanism to downsize the number of BTC mined daily. The idea is that when the demand for BTC surpasses the number of BTC created, the cryptocurrency will eventually see a significant price surge.

Market enthusiasts believe this price increase will occur post-halving. However, it may likely take months for BTC to see such price movement.