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Current Bitcoin Cycle Has Broken This Fee Pattern For The First Time

Press Releases Crypto News Bitcoinist Current Bitcoin Cycle Has Broken This Fee Pattern For The First Time

Data shows the current Bitcoin cycle is the first one in the history of the cryptocurrency to deviate from an established pattern of transaction fees.

The Latest Bitcoin Cycle Has Seen Less Cumulative Fees Than The Previous One

According to data from the on-chain analytics firm Glassnode, the cryptocurrency has seen cumulative fees of just 53,800 BTC since the last halving. The “halving” here refers to a periodic event where the block rewards (that is, the rewards that the miners receive for solving blocks on the network) are permanently cut in half.

The halvings are always quite significant for Bitcoin as the block rewards are the only way new BTC is produced/minted, so their being halved tightens the production of the asset.

The narrative associated with halvings also carries quite the punch, as bull markets have historically followed them. Halvings take place approximately every four years.

Given their periodicity and importance in the market, the halvings have emerged as a popular way to define the start and end points of what constitutes a Bitcoin cycle or “epoch.”

In the context of the current discussion, the various cycles of the cryptocurrency have been compared on the basis of the cumulative transaction fees that they have observed. The “transaction fees” here are naturally the amount that the miners receive for handling individual transactions.

Now, here is a chart that shows the trend in the cumulative fees for each of the previous epochs, as well as for the current cycle so far:

How the cumulative transaction fees for BTC has changed over the epochs | Source: Glassnode on Twitter

As you can see in the above graph, the very first Bitcoin cycle saw the miners receive a total amount of 8,890 BTC in transaction fees. The second epoch then saw this value jump by a few factors, as it registered 38,400 BTC in fees.

The next cycle also followed this pattern, as the cumulative transaction

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Author: Hououin Kyouma

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