Bitcoin recently stabilized around the $47,000 mark, which might have resulted in an increased platform fee. The digital asset soared into the $40,000 mark some days ago since its January surge. Many factors have been fluctuating crypto prices as buying and selling pressure intensifies.
Many traders who don’t have the assets are rushing to buy to enjoy profits from the next significant price growth, while others want to secure their profits before the market bears drag down prices. The two forces cause the sudden rise and fall of most digital assets with a volatile nature. Bitcoin is finally seeing a recovery since it fell from the $44,000 support some days ago to its current $47,000 mark.
Miners earn higher profits amidst the high fees
The digital asset is moving closer to its ATH, which it attained some days ago. The Tesla investment news caused tremendous buying pressure, which immediately soared prices. The asset’s price went from $43,000 to $48,000 within an hour, showing how volatile the investment class could be.
However, some hours later, the price stayed within the $45,000, signaling a healthy correction from its iconic day surge. When the asset started correcting as selling pressure increased, the digital asset fell around the $43,700 mark, leaving traders thinking that Bitcoin would go through more price drops. Fortunately, the digital asset has more moves up its sleeves, with the price gain showing that market bulls are working towards retaking its $48,000 ATH and possibly moving higher.
As the asset grows, it seems that the effect is causing a price increase for transaction fees as investors and miners explained that the fees are nearing their all-time high. Not surprisingly, miners benefit from the new price rise as miners recorded $4 million in profit within an hour. The new figure breaks its previous record on the Bitcoin network, meaning that the platform could be getting more traffic.
How mining works
Digital asset mining is far more complicated than the traditional, which involves digging the soil. Through the mining process, new blocks are verified in the blockchain network. Crypto miners work with some unique systems to mine the assets, thereby strengthening the platform’s security.
The system would answer some questions and then reward the miner with a new asset. The transaction fee makes miners earn more as they now get higher fees and get their reward, which is over 6 BTC. Some sources explain that miners can mine up to 37 Bitcoin rewards in an hour. That value is around $2 million with the present rates.
The platform’s transaction fee is primarily determined by how busy the network is. The network is usually busier around US business hours, which means that mining would attract more fees than other hours. As the digital asset’s price grows, it’s making the process more expensive for retail traders, who have to pay more on transaction fees.
However, the miners benefit from the price growth as they record more earnings as the digital asset brings in higher volumes. The Ethereum network is facing a similar problem as its gas fee skyrockets also.
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