Bitcoin On-Chain Fees Hit 2023 High as Dominance Rebounds Amid Supply Shortage

COINOTAG News reports on May 19th that the average Bitcoin on-chain transaction fee has surged to $2.40 over the past week, marking an increase of approximately $1 since early May and achieving its highest point this year. According to data from Glassnode, the non-liquid supply of Bitcoin, which represents long-term holdings, has reached an all-time high. Analysts suggest that the recent rebound in Bitcoin’s market dominance indicates that previous market adjustments were primarily liquidity-related, rather than indicative of an impending altcoin season. Furthermore, the persistent decline in exchange balances, coupled with increasing demand, could precipitate a significant supply constriction, potentially propelling Bitcoin’s price to new heights.