Bitcoin Fees Rise to Levels Not Seen Since the Initial Craze

Crypto News- Renowned crypto analyst Will Clemente highlights that Bitcoin’s network fees have surged to levels not seen since the frenzied period earlier this year in May 2023. Despite the inconvenience of slightly higher transaction fees, Clemente argues that Bitcoin holders shouldn’t be overly concerned. According to him, these elevated fees play a crucial role in enhancing mining incentives, ultimately fortifying the network’s security.

As of November 12, the total count of minted Bitcoin Ordinals reached an unprecedented 505,000, primarily driven by BRC-20. This achievement pushed the overall number of Bitcoin Ordinals beyond the 40 million mark. Notably, Atomic recorded an impressive minting of over 28,000 on the same day, resulting in fees totaling 2.63 BTC. This stands as the second-highest fee payout since the protocol’s inception on September 23.

Bitcoin Fees Rise to Levels Not Seen Since the Initial Craze

At the time of writing, BTC is trading at $36,706, slightly above its critical support at $36,400. Crypto analyst Ali Martinez warns that a breach of this support level could prompt a correction of 15-20%, potentially bringing the price down to $30,000.

Positive Market Structure and BTC Technical Outlook

Analyst Will Clemente delves into the positive trend in market structure, noting a consistent decrease in the percentage of Bitcoin futures contracts collateralized with BTC/crypto over the past three years, dropping from 70% to the current 25%.

This shift reduces the risk of liquidations during market downturns, as futures are now predominantly collateralized in dollars rather than BTC. Although it doesn’t entirely eliminate the possibility of large-scale liquidations, it makes the overall market less susceptible to significant downside cascades.

Cryptocurrency analyst Faibik (@CaptainFaibik on X) conducted a comprehensive assessment of Bitcoin’s price trajectory, setting a $50,000 target for the digital asset. According to Faibik, if Bitcoin maintains a range between $34,000 and $38,000 over the next two months, there’s potential for a halving rally to kick off by mid-February, reaching the $50,000 mark by late March 2024.