Aug 25, 2025
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Bitcoin Transaction Fees Drop to Decade Lows Amid ETF Growth
Key Market Updates
Bitcoin's price approaches record highs while onchain activity declines.
- Transaction fees have fallen to decade lows, indicating weak market demand despite rising BTC prices.
- Median daily fees dropped over 80% since April 2024; nearly half of recent blocks are underutilized.
- Spot ETFs and custodians now hold over 1.3 million BTC, reducing onchain movement.
- Retail trading has shifted to Solana for lower costs, diminishing Bitcoin's onchain demand.
- Mining profits are strained with reduced rewards and minimal fee contributions to revenue.
Equity markets favor diversified firms; companies shifting focus from mining to AI see positive performance.
- Galaxy Digital's exit from mining aligns with market trends favoring AI and HPC hosting.
- Listed miners like Hive and Core Scientific report increased revenues from AI ventures.
- Companies without diversification face risks from operational costs and low fee income.
Market Movements
- BTC: Trading at $113,286.95, down 1.79%, near a six-week low.
- ETH: Flat at $4,779, with expectations for future highs.
- Gold: Closed at $3,371, boosted by dovish Fed signals.
- Nikkei 225: Up 1.08% following favorable Fed commentary.
Elsewhere in Crypto
- The Funding: Challenges in raising crypto VC funds even during bullish conditions.
- Luca Netz's expectations for Pudgy Penguins' IPO timeline.
- KPMG forecasts strong interest in digital assets will benefit Canadian fintechs in the latter half of the year.