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Bitcoin (BTC) Price Prediction for August 23
GameFi Guides

Bitcoin (BTC) Price Prediction for August 23

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The rates of all top 10 coins are rising today, according to CoinStats.

BTC chart by CoinStats

BTC/USD

The price of Bitcoin (BTC) has gone up by almost 3% since yesterday.

Image by TradingView

On the hourly chart, the rate of BTC is near the local support of $115,189. If a bounce back does not happen by the end of the day, one can expect a level breakout, followed by a further drop to the $114,500-$115,000 zone.

Image by TradingView

On the bigger time frame, the picture is less clear. The price of the main crypto has failed to maintain yesterday’s rise after the bullish bar closure.

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If nothing changes, there is a chance of a test of the $114,000 mark shortly.

Image by TradingView

From the midterm point of view, the rate of BTC has made a false breakout of the $111,919 level. The volume is low, which means traders might not see increased volatility soon. In this case, sideways trading in the range of $114,000-$118,000 is the more likely scenario until the end of the month.

Bitcoin is trading at $115,352 at press time.



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XRP Zooms 3% as Bitcoin Spikes on Powell Comments
Crypto Trends

XRP Zooms 3% as Bitcoin Spikes on Powell Comments

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XRP Spiked 3% as Federal Reserve Chair Jerome Powell firmly put a September rate cut on the table on Friday, causing bitcoin (BTC) and major tokens to move higher.
470 million token selloff drove volume spikes and heavy resistance at $2.92, while ETF delays and weak security rankings compound bearish pressure.

News Background

• Institutional liquidations dominated trading as 470 million XRP were offloaded across major exchanges during the Aug. 21–22 window, triggering a sharp selloff.
• On-chain settlement volumes surged 500% to 844 million tokens on Aug. 18, one of the largest spikes this year, signaling adoption growth despite market weakness.
• The SEC postponed rulings on XRP ETF applications, including Nasdaq’s CoinShares filing, now expected in October. The delay adds to regulatory uncertainty.
• A security assessment placed XRPL at the lowest ranking among 15 blockchains, raising concerns about network robustness and adding to bearish sentiment.

Price Action Summary

• XRP declined 3.1% in the 24-hour session from Aug. 21 13:00 to Aug. 22 12:00, falling from $2.89 to $2.80.
• The token ranged $0.12, a 4.25% volatility band, between a $2.92 peak and $2.80 trough.
• The sharpest move occurred at 19:00 on Aug. 21, when XRP was rejected at $2.92 on 69.1M volume, confirming major resistance.
• Final hour trading (Aug. 22 11:24–12:23) saw XRP drop 2.5% from $2.82 to $2.80 on surging volume of 7.2M, confirming bearish continuation.
• Support emerged near $2.80–$2.85, but accumulation interest weakened with each retest.

Technical Indicators

• Resistance hardened at $2.92 on 69.1M volume rejection.
• Support identified at $2.80–$2.85 zone, though weakening on repeated tests.
• Volume spiked to 96M at 11:00 Aug. 22, confirming bearish follow-through.
• Trading range of $0.12 (4.25%) highlights volatility concentration.
• Final hour selloff of 2.5% with 7.2M volume validated bearish continuation.

What Traders Are Watching

• Whether $2.80 can hold as support; a break risks acceleration toward $2.75.
• ETF-related headlines, with October decisions key to broader institutional flows.
• Whale accumulation patterns — on-chain adoption growing, but price failing to reflect fundamentals.
• $2.92–$3.00 resistance zone as breakout trigger for bullish reversal.



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NFT Gaming

Morning Minute: Coinbase CEO Calls for Bitcoin to Hit $1 Million

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Morning Minute is a daily newsletter written by Tyler Warner. The analysis and opinions expressed are his own and do not necessarily reflect those of Decrypt. Subscribe to the Morning Minute on Substack.

GM!

Today’s top news:

  • Crypto majors mostly red heading into Jackson Hole; BTC -1% at $112,300
  • MetaMask introduces new stablecoin mUSD, to launch on ETH + Linea
  • Plasma’s XPL debuts at $0.45 on Hyperliquid pre-market, 9x from July presale
  • XCOPY piece ‘Death Wannabe’ sells for $475,000
  • Kanye token YZY falls another 37% to $0.69

💰 Brian Armstrong Joins the $1M Bitcoin Club

Coinbase CEO Brian Armstrong just laid out his big target:

Bitcoin could hit $1,000,000 by 2030.

📌 What Happened

Speaking on the Cheeky Pint podcast, Armstrong laid out his bold thesis for Bitcoin’s future, predicting $1M BTC within the next five years.

His rationale centers on three major drivers:

  • Regulatory clarity, with the U.S. paving the way as a “bellwether for the rest of the G20.”
  • Institutional adoption with ETFs, treasuries, and banks leaning further into crypto.
  • Government reserves, even floating the idea of a U.S. Strategic Bitcoin Reserve as a potential tailwind.

He joins a growing list of Bitcoin bulls: Jack Dorsey has also forecast $1M BTC, and Cathie Wood has gone further, projecting up to $3.8M by 2030.

And that doesn’t even take into account some of Michael Saylor’s predictions ($40M+ by 2040).

JUST IN: Michael Saylor says the bear market “is not coming back.”

“Bitcoin is not going to zero, it’s going to $1,000,000.” pic.twitter.com/kodw2huwL5

— Watcher.Guru (@WatcherGuru) June 10, 2025

🧠 Why It Matters

Anyone can make a big bull call like this.

But some calls matter more than others.

Brian Armstrong’s view carries weight as the CEO of the largest U.S. crypto exchange and a key player in regulatory conversations.

Big targets like $1M drive:

  • Market psychology: Big round numbers like $1M fuel long-term narratives and investor conviction, even if short-term volatility dominates.
  • Institutional FOMO: With ETFs booming and corporate treasuries accumulating, the groundwork for Armstrong’s thesis is already being laid.
  • Strategic framing: The idea of a U.S. “Bitcoin reserve” may sound wild, but in a world where nations are competing for financial sovereignty, it’s not far-fetched.

And targets like this make it easier for folks buying for the first time over $100,000 to have a nice return multiple in mind (helps with unit bias).

$1M is a meme number, but memes seem to find a way into existence in crypto.

The last big one was early Bitcoiners “selling to the bankers.” Well guess what, that’s actively happening.

So maybe if $1M BTC is memed enough, it will be memed into existence as well…



🌎 Macro Crypto and Memes

A few Crypto and Web3 headlines that caught my eye:

  • Crypto majors were mostly red on the day ahead of Powell’s comments at Jackson Hole this morning;BTC -1% at $112,300, ETH even at $4,285, XRP -3% at $2.80, SOL -2% at $180
  • ZEC (+11%), OKB (+7%) and MORPHO (+4%) led top movers
  • The ETH ETFs posted their first day of net inflows ($287.6M) after 4 red sessions
  • MetaMask announced its stablecoin mUSD, coming to ETH and Linea soon
  • A long-dormant Bitcoin whale moved 670 BTC (~$75M) to open leveraged long positions on Ethereum
  • The OCC rescinded its consent order on Anchorage Digital after the bank met AML compliance, restoring its status as the only federally chartered crypto bank in the U.S
  • The EU is considering dropping its CBDC plans for a stablecoin
  • Singapore’s DBS Bank rolled out Ethereum‑tokenized structured notes, giving institutional investors blockchain access to crypto-linked products
  • Gemini secured a MiCA license in Malta, enabling compliant expansion into 30+ European countries under EU crypto regulations

In Corporate Treasuries

In Memes

  • Memecoin leaders are green on the day; DOGE +2%, Shiba +1%, PEPE +3%, PENGU +4%, BONK +2%, TRUMP -2%, SPX -4%, and FARTCOIN -3%
  • YZY fell another 37% on the day to $0.69 and an $89M mc
  • SPARK (+80%), TROLL (+20%) and BITTY (+165%) led onchain SOL meme movers

💰 Token, Airdrop & Protocol Tracker

Here’s a rundown of major token, protocol and airdrop news from the day:

  • Plasma’s XPL token went live for pre-market perps trading on Hyperliquid, opening at $4.65B fdv
  • Coinbase added Trump-backed USD1 stablecoin from World Liberty Financial to its listing roadmap, expanding its stablecoin lineup

🤖 AI x Crypto

Section dedicated to headlines in the AI sector of crypto:

  • Overall market cap down 4% to $11.8B, leaders were mostly red
  • FARTCOIN (-4%), VIRTUAL (-4%), TIBBIR (+4%), ai16z (-3%) & VVV (-7%)
  • fxn (+24%), Simmi (+22%) and IRIS (+15%) led top movers

🚚 What is happening in NFTs?

Here is the list of other notable headlines from the day in NFTs:

  • ETH NFT leaders were mixed; Punks +4% at 48.3 ETH, Pudgy -1% at 12.44, BAYC -2% at 11.4 ETH
  • Reflections (+19%) and Meebits (+10%) were notable top movers
  • Bitcoin NFTs were mostly red or even, no notable movers
  • Abstract NFTs were mostly green, led by Final Bosu (+27%) and OCH Heroes (+15%)
  • XCOPY edition of 10 ‘Death Wannabe’ sold for $475,000 (only 4 editions still in existence)
  • Hyped new mint Cerebro trades below 0.08 ETH mint price after debut

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Crypto Trends

Bitcoin ETFs Shed $1 Billion in Five Days Amid Ethereum Comeback

by admin



In brief

  • Bitcoin ETFs are experiencing a significant sell-off, with over $1.1 billion in outflows over the past five days as investors de-risk ahead of the Jackson Hole symposium.
  • Ethereum ETF flows have bucked the bearish trend, with a strong inflow on August 21.
  • Crypto market remains highly volatile with significant liquidations and key price levels in play, as traders await clarity on the Fed’s interest decision.

Bitcoin ETFs continued their five-day streak of outflows, shedding over $1.1 billion in the past week as investors de-risk ahead of U.S. Federal Reserve Chairman Jerome Powell’s final address at Friday’s Jackson Hole symposium.

This widespread sell-off in risk-on assets has coincided with a 10% crash in Bitcoin’s price since its August 14 all-time high of $124,545.

U.S. equities have also suffered a similar fate, with the S&P 500 index down 1.72% since its own high on August 13.

The large-scale de-risking across ETFs and cryptocurrency markets can be attributed to a concerning inflation data released in August, leading to a significant shift in the market’s rate cut perspective.

The rate cut odds, as a result, have dropped from 90% to 75%, triggering an outflow spree in Bitcoin ETFs.

Ethereum ETF flows, however, have bucked the bearish trend, noting a $286.7 million inflow on August 21, ending the four-day outflow streak.

“Ethereum is going through one of the strangest weeks these days,” Arthur Azizov, Founder and Investor at B2 Ventures, told Decrypt.

The market is “stuck between adoption and stress,” Aziziv said, highlighting the buyers’ inability to move prices despite positive news like BTCS’s plan to pay dividends in Ethereum.

The recent $3.8 billion in staking validator exits have added selling pressure to Ethereum, said Azizov, but clarified that the long-term institutional trend is a “key tailwind” since these large investors control 5% of Ethereum’s supply, which helps “tightens the float.”

As investors speculate on what Powell might say, volatility is likely to remain elevated.

The sudden drop in Bitcoin’s price, which trades around $112,500, caused over $100 million in liquidations over the past hour alone, with $317 million worth of positions forced to close in the past 24 hours, according to CoinGlass data.

Options data on Deribit shows a high concentration of trading around the $120,000 and $110,000 strike prices, indicating a strong battle for control at those levels ahead of Powell’s highly anticipated speech.

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Jamie Crawley
Crypto Trends

Liquid Staking on Bitcoin Gains Momentum With Lombard’s $BARD Token

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For most of its history, bitcoin has been prized as digital gold: an asset to hold rather than use. That passivity has left trillions of dollars’ worth of BTC sitting idle in wallets, disconnected from the yield strategies and composability that define decentralized finance (DeFi).

The rise of liquid staking tokens promises to change that, positioning bitcoin not only as a store of value but as a productive asset integrated into onchain capital markets.

Liquid staking refers to the process of uses offering their crypto to help secure a network, and receive a liquid, tradable token in return that represents their staked assets and can be used across DeFi while the original tokens continue earning staking rewards.

Lombard Finance has emerged as one of the prominent projects in bitcoin liquid staking. Its flagship product, LBTC, is a yield-bearing token backed 1:1 by BTC.

When BTC is deposited into the Lombard protocol, the underlying coins are staked, primarily via Babylon, a protocol enabling trustless, self-custodial bitcoin staking. Users receive LBTC in return, which can be deployed across DeFi ecosystems while the original Bitcoin earns staking rewards.

This dual functionality is key. Holders can keep exposure to bitcoin while using LBTC in lending, borrowing, and liquidity provision across protocols such as Aave, Morpho, Pendle, and Ether.fi. Designed for interoperability, LBTC moves across Ethereum, Base, BNB Chain, and other networks, preventing liquidity fragmentation and ensuring bitcoin can participate in a multi-chain DeFi environment.

A market potentially worth billions

By mobilizing BTC’s dormant liquidity, Lombard and other liquid staking projects aim to provide the infrastructure for Bitcoin DeFi, channeling the asset’s vast market cap into onchain capital markets.

This effort mirrors Ethereum’s own transformation through liquid staking derivatives, but with the potential to unlock a deeper pool of value given bitcoin’s scale.

To contextualize the difference in scale, Ethereum’s liquid staking market, led by Lido’s stETH, boasts a market cap of approximately $38 billion. In contrast, the entire bitcoin LST sector is still nascent, with total market capitalization around $2.5 billion. Lombard’s LBTC alone accounts for roughly $1.4 billion of that, or around 40% of the bitcoin LST market.

Lombard’s BARD

Building on that foundation, Lombard this week announced the creation of the Liquid Bitcoin Foundation and its native $BARD token, alongside a $6.75 million community sale.

The Foundation will act as an independent steward of the protocol, funding research, grants, and education, while establishing governance frameworks to preserve neutrality. $BARD will serve as the utility and governance token of the ecosystem, giving holders the ability to stake to secure Lombard’s core infrastructure, vote on proposals, and gain access to new products.

Jacob Phillips, Lombard’s co-founder, described the community sale as “an invitation to over 260,000 LBTC holders and others in the Bitcoin ecosystem to help shape the future of bitcoin onchain.” Erick Zhang, founder of Buidlpad who will host the sale, added that Lombard is “a pioneer unlocking bitcoin’s full potential as digital gold and a foundation for next-gen capital markets.”



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Japan Targets 20% Crypto Tax, Bitcoin Etf &Amp; Stablecoin By 2026
Crypto Trends

Japan Targets 20% Crypto Tax, Bitcoin ETF & Stablecoin by 2026

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Japan is moving closer to a major overhaul of how it treats cryptocurrencies. Regulators want to make digital assets easier to own, trade, and invest in as part of a broader plan to turn the country into an “asset management nation.”

Tax Relief for Crypto Investors

Right now, crypto profits in Japan can be taxed at rates as high as 55%. That is far tougher than the 20% flat tax applied to stock and bond gains. The Financial Services Agency (FSA) is proposing a change that would bring crypto into the same 20% bracket. 

It also wants investors to be able to carry forward losses for three years, something already common in traditional markets. The idea is simple: reduce the burden on traders, encourage activity, and rebuild trust in the market.

The reform does not stop at taxation. The FSA is preparing to classify cryptocurrencies as financial products under the Financial Instruments and Exchange Act. That would put them in the same category as stocks and bonds, requiring stricter disclosure and insider trading rules. The shift would also clear the way for Japan’s first spot Bitcoin ETF, a product local industry groups have been lobbying for.

Stablecoins and Market Growth

The FSA is also planning to approve the country’s first regulated yen-based stablecoin. JPYC, issued by a Tokyo fintech firm, has set a target of 1 trillion yen, about $6.8 billion in circulation over three years. A stablecoin backed by clear regulation could make it easier for companies and investors to handle digital payments with less risk.

Japan’s crypto market is growing, with domestic trading volumes expected to double from $66.6 billion in 2022. Yet retail adoption lags badly. Surveys show 88% of Japanese residents have never owned Bitcoin. Regulators believe the 2026 reforms can change that by cutting barriers and bringing crypto closer to mainstream finance.

Also Read: SBI Holdings Forms Joint Venture With Circle to Advance USDC in Japan



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'No Reason to Buy Bitcoin': Ether Supporters Celebrating ATH
GameFi Guides

‘No Reason to Buy Bitcoin’: Ether Supporters Celebrating ATH

by admin


  • Ethereum (ETH) price hits ATH, community celebrates
  • Ethereum’s (ETH) next step: Price discovery ahead?

Yesterday, on Aug. 22, 2025, Ethereum (ETH), the second-largest cryptocurrency, finally hit an ATH over $4,885 on major spot exchanges. The Ethereum (ETH) community in CT is mocking its opponents and guessing the potential targets of ETH’s price rally.

Ethereum (ETH) price hits ATH, community celebrates

With Ethereum (ETH) smashing through its 2021 high, there’s no reason to buy Bitcoin (BTC) any longer. Ethereum (ETH) is at the same time more decentralized and represents a better store of value, long-term ETH proponent Anthony Sassano says on X.

There is no reason to buy BTC instead of ETH.

Ethereum is more decentralized than Bitcoin and ETH is a much better store of value than BTC.

You either accept this now, or be forced to accept it when ETH flips BTC.

The choice is yours.

— sassal.eth/acc 🦇🔊 (@sassal0x) August 23, 2025

According to him, cryptocurrency community members should either accept it now or when Ethereum (ETH) finally flips Bitcoin (BTC).

Meanwhile, the ETH/BTC ratio surged from 0.017 to 0.041 in just four months. Ethereum (ETH) outperformed Bitcoin (BTC) by more than 2.5x since.

Mocking Ethereum (ETH) bears is another hot topic on X today. With $468 million in liquidated short positions, yesterday’s session was the most brutal for Ethereum (ETH) bears in weeks.

ETH bears with short positions liquidated at ATH frantically pulling up the validator exit queue chart to hold on to one last piece of FUD and seeing that it has peaked & started decreasing. pic.twitter.com/YUtpbielOf

— Jrag.eth (@Jrag0x) August 22, 2025

After peaking on Aug. 20, Ethereum (ETH) unstaking queue started clearing. The period of unstaking dropped below 15 days for the first time in weeks. Normally, this is also a signal of growing interest in Ethereum.

Ethereum’s (ETH) next step: Price discovery ahead?

Ethereum (ETH) supporters are sure that after revisiting the previous ATH, Ether is set to start a price discovery period.

Fundstrat’s Tom Lee, one of the vocal Ethereum (ETH) proponents in this cycle, is sure that Ethereum (ETH) has all chances to surpass Bitcoin (BTC) by market cap.

As covered by U.Today earlier today, Raoul Pal, a seasoned economist and investor, expects the altcoin season to peak by mid-2026.

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The closest Ethereum (ETH) price target for bulls is $5,000. As of printing time, Ethereum (ETH) is changing hands at $4,710.





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Ethereum in, Bitcoin out: Historic 'Flippening' Happens in ETFs
NFT Gaming

Ethereum in, Bitcoin out: Historic ‘Flippening’ Happens in ETFs

by admin


  • Bitcoin spot ETFs: Six days in red
  • Ethereum ETFs logged their second-biggest monthly inflow

Cryptocurrency spot ETF investors are bringing new liquidity to Ethereum ETFs in the U.S. Yesterday, over $287 million was injected amid an 11% Ether price upsurge. Meanwhile, Bitcoin spot ETFs are bleeding, being in the red for six days in a row.

Bitcoin spot ETFs: Six days in red

U.S. Bitcoin-based spot ETFs are under pressure the past days. Since Aug. 15, 2025, the total value of all spot ETFs on Bitcoin (BTC) plunged by $1.75 billion. The session of Aug. 19 was the most devastating with $523 million being erased in 24 hours, data says.

8/22 Bitcoin ETF Total Net Flow: -$23.3 million
(6TH CONSECUTIVE DAY OF OUTFLOWS)$IBIT (BlackRock): -$198.96 million$FBTC (Fidelity): $50.88 million$BITB (Bitwise): $12.70 million$ARKB (Ark Invest): $65.74 million$BTCO (Invesco): $0.00 million$EZBC (Franklin): $13.51… pic.twitter.com/dDXakiONiT

— Crypto_Mario_ ₿. ⧉ 🧡 🅑 🟧 ⓑ (@Crypto_Mario_B) August 23, 2025

BlackRock’s IBIT is responsible for almost $200 million withdrawals, followed by Fidelity’s FBTC and ARK Investments’ ARKB products.

The total net assets for U.S. Bitcoin spot ETFs sit at $150.23 billion. With a $1.3 billion decline in this metric, BTC spot ETFs are on track to close their most bearish month since February 2025.

At the same time, Bitcoin’s (BTC) price remained relatively stable, only losing 2.3% in the last seven days. This might be a signal of investors reallocating their funds.

Bitcoin (BTC), the largest cryptocurrency, is changing hands at $114,900, being down by 2.4% in the last 24 hours on major spot trading platforms.

Ethereum ETFs logged their second-biggest monthly inflow

At the same time, catalyzed by the hotly-anticipated Ethereum (ETH) price ATH, Ethereum-based spot ETFs are blooming. In yesterday’s session, they registered a decent $287.6 million liquidity inflow.

This inflow pushed the total August 2025 growth over $2.45 billion. That being said, Ethereum (ETH) has already secured the second most bullish month for its ETFs.

BlackRock’s ETHA and Fidelity’s FETH account for the lion’s share of yesterday’s session. With new liquidity, Ethereum spot ETF segment allocated $26.55 billion in total assets. Two weeks ago, this metric reached $21 billion.

Ethereum’s (ETH) price stabilized at $4,741, being 3.6% up in the last 24 hours.





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Traders Are Shifting To Ethereum As Bitcoin Volatility Drops
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Traders Are Shifting to Ethereum as Bitcoin Volatility Drops

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Bitcoin, once known to be the most volatile market in the finance space, is now acting calm and steady. The big swings that once made it famous are fading and this is pushing investors that love taking high risk to look for action somewhere else. 

According to a report from Bloomberg, the world’s largest cryptocurrency is beginning to look more like a traditional stock than a risky gamble.

Bitcoin’s annual volatility has dropped to 38%, according to Bytetree Asset Management. The number was close to 200% over a decade ago. This means Bitcoin now moves in the same way that known firms like Tesla, Starbucks and co move. Some investors believe that the calm movement is because Bitcoin is turning into a long-term hold, and no longer for fast profits.

Because of this, attention is shifting to Ethereum, the second largest crypto on the chart. Recently, on several trading days this month, Ether exchange-traded funds (ETFs) have matched or even beaten Bitcoin in inflow due to shift in demand and purchase from corporate firms.

For instance, BlackRock’s Ether ETF, which was launched in April 2024, has already built $5.5 billion in open options positions. This equals about 40% of all Ether options on the trading platform Deribit. For many traders, this proves Ethereum has become the new place for faster price changes.

“This is not an everything rally,” said Jeff Dorman, chief investment officer at digital asset firm Arca. He explained that trading action is mainly focused on Bitcoin and Ethereum, not on smaller tokens.

However, the motivations differ between the two assets. “For many traders, the Bitcoin trade has already played out,” said Vivek Raman, founder of research firm Etherealize. “Ethereum still feels under-owned, more volatile, and more reactive.”

This month alone, Ether ETFs have seen $2.5 billion in inflow, while Bitcoin funds have suffered net outflows of $1.3 billion, according to Coinglass data.

But, the risk still remains, Arthur Azizov of B2 Ventures predicted that Ether prices could continue to consolidate between $3,900 and $4,400, but warned the price could slip toward the low $3,000s if leveraged trades unravel. As of the time of writing this report, Ethereum is trading for $4,775, up 13% today, according to CoinMarketCap.

“Ethereum is moving into a risk-off sentiment,” said Bradley Duke, European head of Bitwise. “A short squeeze can’t be ruled out, but for now, many funds are preparing for a pullback.”

Also Read: SharpLink Approves $1.5B Stock Buyback Tied to ETH Holdings



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How to track and optimize Bitcoin transaction fees
Crypto Trends

How to track and optimize Bitcoin transaction fees

by admin



Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Bitcoin fees incentivize miners and speed confirmations, but costs can spike during market congestion.

Summary

  • Bitcoin fees range from cents to triple digits in busy times.
  • Average BTC fee is $0.87, down from $4.88 a year ago; spikes hit $7.68 in 2024.
  • ForumPay helps businesses integrate crypto payments with real-time fee tracking.

Bitcoin transaction fees are a core part of how the Bitcoin network operates. These fees primarily serve as an incentive for miners to process transactions promptly, adding them to the current or next block to confirm the transfer. 

Fees were described in Bitcoin’s original White Paper as a way to keep the system competitive and to prioritize transactions during periods of congestion — users who attach higher fees tend to be confirmed more quickly. Historically, average fees range between $0.50 and $2.50, but they can jump into double or even triple figures when the market is particularly active or when someone’s rushing a crypto payment.

In this article, we’ll look at how Bitcoin transaction fees are calculated, the factors that affect them, and practical ways to track and optimize Bitcoin transaction fees.

How are Bitcoin transaction fees calculated?

Bitcoin transaction fees are an integral part of the blockchain ecosystem. As mentioned above, they’re influenced mainly by two factors: the size of the transaction data and demand for block space. Larger transactions, measured in virtual bytes (vBytes), consume more block space and therefore incur higher fees (a block can hold up to 4 MB of data). Likewise, when demand for block space rises, the cost to process each transaction increases. When sending BTC from a Bitcoin wallet, users can select a fee rate, calculated in sats/vByte (satoshis per vByte).

To calculate the transaction fee, multiply the fee rate (sats/vByte — the number of satoshis paid per vByte of data) by the transaction’s size. For example, if the fee rate is 50 satoshis per vByte and the transaction size is 200 vBytes, the total fee would be 10,000 satoshis. A satoshi is the smallest unit of Bitcoin, equal to 0.00000001 BTC. Using that example, on the day of writing, with Bitcoin at approximately $116,854 per BTC, 10,000 satoshis (0.0001 BTC) are valued at around $11.66.

Factors affecting Bitcoin transaction fees

Two primary factors drive fees: network congestion and transaction size. Network congestion occurs when pending transactions exceed the available block space; as a result, fees rise as users compete for faster confirmation. Surges in activity — market moves, high trading volumes, or major events — often trigger higher fees. During quieter periods, demand for block space drops and fees typically decrease, letting users send a crypto payment at a lower cost.

Transaction size also matters. It depends on the number of inputs and outputs — Bitcoin being spent are inputs, while destination addresses are outputs. Larger transactions take up more room in a block and, therefore, require higher fees to be prioritized by miners. Users can optimize by consolidating smaller inputs, using SegWit (Segregated Witness) addresses, or timing transactions when traffic is low. Since miners select transactions based on profitability, offering a more competitive fee helps ensure faster confirmation.

How to track and optimize Bitcoin transaction fees

Checking fees before sending is essential. Going in blind can eat into a balance and slow confirmations. Fortunately, several tools provide real-time data so users can estimate costs before making a crypto payment: Mempool.space offers graphs and visuals on the network’s current state, including unconfirmed transactions and recommended fees by speed target. BitcoinFees.net provides a straightforward estimator with suggested fees based on live conditions.

According to YCharts, at the time of writing, the average Bitcoin transaction fee is $0.87, down from $4.88 on the same day last year. By comparison, on August 22, 2024, average fees surged by over 900% — from $0.74 to $7.68 in a single day — due to increased demand. A pseudonymous Bitcoin developer known as Mononaut reported a case where one user paid 0.5 BTC in fees to consolidate 0.55 BTC, a reminder always to check fees to avoid costly surprises.

For more on crypto trends or to learn how to integrate crypto payments into a business workflow via a crypto payment gateway, visit the ForumPay official website, or get in touch with the sales team to discuss any questions.

Disclosure: This content is provided by a third party. Neither crypto.news nor the author of this article endorses any product mentioned on this page. Users should conduct their own research before taking any action related to the company.



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