With nearly 130,000 transactions awaiting confirmation on the Bitcoin blockchain, according to data from the Johoe-Hoenicke website, Bitcoin’s average transaction fees are currently at a four-month high at $ 46.88, an increase of more than 200% since April 4, when the average transaction fee was $ 15.56.
David Gerard attributed today’s congestion to Bitcoin holders who despaired of the crash.
A trader Decrypt spoke to, QCP Capital’s Darius Sit, attributed the crash to a rumor that the US Treasury is about to chase big financial institutions for laundering cryptocurrencies. If that rumor is true, traders may be selling their cryptos for fear that the price will fall further.
To make matters worse, there are power outages in the Chinese province of Xinjiang, an important point for Bitcoin mining. Fewer operating Bitcoin miners put upward pressure on average transaction fee prices.
Bitcoin’s hashrate, (an indicator of the network’s effective computing power), dropped from 145 exahash on April 16 to 105 exahash a day later. It is currently at 120 exahash per second, according to BitinfoCharts.
While some traders stay out of the market, others undoubtedly see today’s crash as an opportunity to buy Bitcoin at bargain prices.
* Translated and edited with authorization from Decrypt.co