Bitcoin transaction fees on Thursday spiked to their highest level since the middle of August and at a pace unmatched since July 2018, according to data from BitInfoCharts. The sudden spike, an increase of 231% in just four days, is likely the result of Bitcoin’s price rise this week.

On Thursday, it cost an average of $6.3 to process a transaction on the Bitcoin blockchain; Bitcoin fees haven’t been this high since August 6. Yesterday, Bitcoin fees dipped to $5.7.

pasted image 0 10

Just on Monday, a Bitcoin transaction cost an average of $1.9. The $4.4 increase this week is the sharpest increase in Bitcoin fees since the bull run in the summer of 2018.

The hiked fees probably have something to do with Bitcoin’s rise in price. On October 6, Bitcoin’s price was around $10,600. But the price increased sharply this month to its current price of around $13,000. That’s an increase of about 23%.

Bitcoin
BTC
+14.56%$107,789.79
24H7D1M1YMAX
Created with Highcharts 10.3.3Apr 30May 2May 4May 6May 8May 10May 12May 14May 16May 18May 20May 22May 24May 26May 28$90000$95000$100000$105000$110000$115000
Price data by
BTC price

Bitcoin fees increase when there is a surfeit of activity on the Bitcoin blockchain. These fees are paid to Bitcoin miners—computers that run special software that processes transactions.

When there’s more demand for processing transactions than there are miners to process them, fees go up. This is because miners prioritize the people who want to process Bitcoin transactions so bad that they’re willing to pay a premium.

Paul Tudor Jones is a believer in Bitcoin. Image: Bret Hartman/TED

Buying Bitcoin Is Like Investing Early in Tech, Says Paul Tudor Jones

Billionaire hedge fund manager Paul Tudor Jones is warming up to the rapidly evolving Bitcoin market. In an interview with CNBC this morning, Jones said the crypto asset is an attractive hedge against inflation and spoke highly of the growing community of investors that have entered the space. Jones, the founder of Tudor Investment Corp., told CNBC that we are still in the very early stages of the Bitcoin evolution, but after dipping his toe in the market earlier this year, he’s grown more comf...

NewsBusiness
2 min read
David Jones

There’s often far more action on the Bitcoin blockchain when Bitcoin’s price rises: people want to get in on Bitcoin in case the price increases even more. And the miners sit there waiting, ready to gobble up fees.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.