Fun

2 Days After the Bitcoin Halving: Network ‘Remains Strong,’ Higher Fees, Bullish Sentiment

News Feed - 2020-05-14 12:05:41

2 Days After the Bitcoin Halving: Network "Remains Strong," Higher Fees, Bullish Sentiment


On May 11, 2020, the Bitcoin network completed it’s third block reward halving and the network seems to be chugging along just fine. However, it may take a while longer to see the halving’s effect on the mining industry and right now bitcoin transaction fees have risen exponentially. Despite the rising fees, the research firm Glassnode explains that the Bitcoin blockchain’s health “remains strong” after the reward reduction.Despite the Rise in Bitcoin Transaction Fees, Glassnode Report Says Overall Network Health remains strong


The Bitcoin (BTC) network has halved its block reward and so far, everything is still working as intended, at least for now. One issue people are complaining about today is the fact that transaction fees have risen significantly since the halving. For instance, if one was to do a rough average of the 50 blocks mined before the halving, they would see that miners were getting around 0.205 BTC in transaction fees per block.




After the halving, however, and a little beforehand, the transaction (txn) fees started rising much higher. At the time of publication, the fee required to get into the next block can range between $2-4 per txn. 241 blocks have been mined so far after the halving, and miners are getting around 1 BTC in fees per block or a touch more or touch less per block. Meaning, most miners are getting around 7.5 to 8 BTC per block, which is not too bad of a loss especially with the price rising slowly.BTC price on May 13, 2020, rises above the $9K region.


A recent report from the research and analysis firm Glassnode called “The Week Onchain: Week 19, 2020,” explains that the Bitcoin network is still in peak health performance-wise. Bitcoin fundamentals remained strong leading up to and following the halving,” Glassnode reported. “Hashrate follows its trajectory as miners keep mining,” the report added. As far as BTC’s market health is concerned “onchain fundamentals dropped slightly in Week 19,” Glassnode said. “GNI registered a 2 point decrease over the week, pushing its overall assessment of the Bitcoin ecosystem to 74 points, the 10th highest weekly value since 2017. This downturn was mainly driven by the Sentiment subindex, which decreased by 13 points,” the company wrote. Glassnode further continued:Network Health improved through solid gains in both Network Growth and Network Activity, the former reaching the highest possible value for the first time since 2017. Liquidity has seen marginal improvement over the last few weeks after registering increases in Transaction Liquidity and slight decreases in Trading Liquidity. After staying close to the 50 point mark for 5 weeks, it has now worked its way up by 9 points. In the lead up to Bitcoin’s third halving, Sentiment, on the other hand, has begun to drop sharply. Despite this, however, overall network health remains strong.


Coinshares CEO: ‘Bitcoin Is the Perfect Hedge for Any Investor’


Additionally, many BTC investors and cryptocurrency company executives are still very optimistic about bitcoin’s next rise. Jean-Marie Mognetti, CEO of Coinshares, detailed in a note to investors that with “the courage of [his] conviction, [he is] bullish for bitcoin.”


“Meanwhile, the Fed is trying to keep the market sentiment positive and has extended its balance sheet by about 2.6 trillion dollars since the end of February,” Mognetti wrote. “This is the biggest monetary inflation ever witnessed and the market is expecting more fiscal stimulus and bond-buying programs to be issued. This is somehow already priced in with Fed fund futures for mid-2021 and end of 2021 price implying negative Fed rates. This is a first for the US, but we are in a time of “firsts”. Oil was also not supposed to be able to trade in negative territory,” the Coinshares CEO added. Mognetti concluded by stating:The rest of the world needs to either keep printing money or see their own currency eroding drastically in front of the unbeatable dollars. Turkey, Brazil, or Argentina are the perfect examples of this. Consequently, in a world where investors continue to seek protection for their portfolios against the world’s Central Bank’s behavior, bitcoin, a digital currency whose supply is programmatically defined to reduce until it reaches its maximum supply, would seem to be the perfect hedge for any institutional investor’s portfolio.Despite Glassnode’s report, fork.lol, a site which measures hashrate every three hours shows that the hashrate has dipped at least 15-20 exahash since the halving.


At the time of publication, BTC has crossed the $9K price region once again after going below $9K just before the halving. The cryptocurrency has a market capitalization of around $166 billion today and the network hashrate was unaffected by the halving. Although data from the web portal Fork.lol shows that BTC may have lost around 15-20 exahash in the last 24 hours. If the price per BTC, continues to rise however, then those miners could easily return in the near future. If the price goes southbound, BTC network observers may see a much larger capitulation of miners leaving. So far, with more than 24 hours behind the halving and 241 blocks mined that doesn’t seem to be the case.


What do you think about the day and a half after the Bitcoin Halving? Let us know in the comments below.Eric Hughes: A Cypherpunk"s ManifestoFEATURED | May 2, 202012 Months of Onchain Data Shows Bitcoin Whales Obtained Hundreds of BTC from Small FishFEATURED | May 1, 2020Tags in this storybitcoin halving, BTC, BTC halving, Bullish, Coinshares, Coronavirus, COVID-19, Cryptocurrency, Fees, glassnode, Halving, Jean-Marie Mognetti, Market Health, Miners, Network Health, Predictions, report, revenue, Sentiment, Transaction Fees


Image Credits: Shutterstock, Pixabay, Wiki Commons, Glassnode, Fork.lol, markets.Bitcoin.comUse Bitcoin and Bitcoin Cash to play online casino games here.Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Read disclaimer Show comments

News Feed

Bitcoin Strengthens Vs. Gold, Analyst Sees ‘Higher Than Expected’ Returns
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Wintermute in $300M funding talks, Tencent interested: Report
Derek Andersen4 hours agoWintermute in $300M funding talks, Tencent interested: ReportThe crypto market maker could have a valuation of $2 billion if the talks come to fruition.1675 Total views1 Total sharesListen to art
Jagjit Singh17 hours agoHow to earn passive income with peer-to-peer lendingP2P lending is a way for individuals to lend money directly to other individuals without involving traditional financial institutions, such as b
Tristan Greene5 hours agoBitcoin Frontier Fund launches accelerator program for Ordinals startupsThe program will provide seed money, mentoring and support to approved applicants.3348 Total views13 Total sharesListen to
Bitdeer to expand operations with $150M convertible notes offering
Ezra Reguerra12 hours agoBitdeer to expand operations with $150M convertible notes offeringBitdeer Technologies Group’s stock price dropped to $6.33 after it announced a senior convertible notes offering. 2159 Total v
Solana’s SOL/BTC pair flashes bullish — Are new highs in store?
Rakesh Upadhyay7 hours agoSolana’s SOL/BTC pair flashes bullish — Are new highs in store?Solana’s coiling price against Bitcoin suggests it could be ready for a breakout soon.1008 Total views1 Total sharesListen to
Chrono․Tech Attracts $30 million Investment
Chrono․Tech Attracts $30 million Investment press release PRESS RELEASE. Australian asset manager Mark Carnegie and a European Family Office have recently taken stakes in the comp
Shiba Inu Price Flashes Historical Bull Flag, Here’s What Happened Last Time
Este artículo también está disponible en español. Technical analysis suggests that Shiba Inu is currently positioned at a critical price junction, one that could lead to
Bitcoin Price Retests Support Line After Crash Below $95,000, Here’s The Next Target
Este artículo también está disponible en español. The Bitcoin price has struggled to reclaim previous price highs above $100,000, with bearish sentiment dominating the ma
MakerDAO and Aave’s DeFi conflict reopens over DAI’s perceived risk growth
Francisco Rodrigues10 hours agoMakerDAO and Aave’s DeFi conflict reopens over DAI’s perceived risk growthAave has reduced its loan-to-value requirements for DAI after MakerDAO’s stablecoin gained indirect exposure
Accounting Firm PWC’s Hong Kong Branch Purchases Land in The Sandbox Metaverse
Accounting Firm PWC"s Hong Kong Branch Purchases Land in The Sandbox Metaverse On Thursday, Pricewaterhouse Coopers’ (PWC) Hong Kong unit announced that it purchased a land
Amaka Nwaokocha11 hours agoCrypto speculations simmer after cryptic posts on XThe crypto community on X is on edge over cryptic posts by Ripple’s chief technology officer and X itself.3324 Total views31 Total sharesLis