In the days of December 16-17, Bitcoin (BTC) transaction fees reached their highest levels since the beginning of 2023, surpassing $24 million, according to data from cryptofees. This is the highest transaction fee level of the year and represents a significant increase compared to previous periods in 2023.
Based on a combination of historical data from 2023, it can be observed that there were only two periods in the year when transaction fees increased: one in May and the other starting from November onwards. However, the surge in transaction fees in the late quarter of the year stands out with a substantial and notable increase.
Bitcoin transaction fees (orange line) not only reached their highest point of the year but also hit their highest level in over four years, second only to the 2018 price surge.
Transaction fees in USD (blue area) have returned to levels typically seen when Bitcoin reaches its price peaks. This includes periods such as January 2018 when Bitcoin’s price dropped from its $20,000 peak, July 2019 when it dropped from $14,000, May 2021 when it dropped from $65,000, and most recently in May 2023 when the price corrected from $30,800.
With the significant increase in Bitcoin transaction fees back to these levels, it can be viewed as a predictive signal that the trading sentiment for Bitcoin has reached a peak.