Average Cost Of Single Bitcoin Transaction Plunges By Over Eighty Three Percent Since Post Halving High

The average cost of a single BTC transaction has dropped from high levels achieved immediately after the recent Bitcoin halving.

The Bitcoin transactions cost has tumbled to around one USD, which is an over eighty three percent drop since the halving. Notably, the average transaction fees of Bitcoin have touched their bottommost level since 28th April. As per data from Bitinfocharts, the average cost of sending a Bitcoin is now only 1.083 USD.

A few days back, on 20th May, the average cost of a BTC transaction was over six USD. This signifies the peak average fee in approximately 2 years’ time period. Interestingly, the transaction fees have not been that high since July 2018.

The sudden increase in transaction fees toward the end of May overlapped with the excitement around Bitcoin halving, subsequent to which the reward for mining new Bitcoin reduced to half the prior number.

During the halving, trading activity got spiked as there was an increase in the demand for Bitcoin. This is because some people supposed that the price of Bitcoin could surge after the halving. This led to an immediate upsurge in the demand for processing BTC transactions because of which the transaction fees got increased.