Much to the relief of Bitcoin traders and investors around the world, Bitcoin price has managed to cover a lot of lost ground from a low of $3,600 to above $4,200 fending of rumors and speculations that the cryptocurrency will hit a low of $3,000.
The increase in Bitcoin price is accompanied by decrease in Bitcoin trading volumes and this is not surprising considering that there is almost always an inverse relation between the two. Despite the decline in trading volumes, they stand at a respectable $2.5 billion for the past 24 hours.
While price recovery is definitely a sign of relief, one thing that has been troubling traders, investors and regular users is the increase in Bitcoin transaction fees. As of now, it costs $4.30 for the simplest 226 bytes transaction – double the amount it used to cost over a week back. 226 byte transactions are rare and as of now, it is 400 bytes transactions that happen the most thereby taking transaction fees to $8. User have been complaining a lot about this substantial increase in prices.
The primary question here would be why is bitcoin rising while transaction fees are skyrocketing? The probable answer is because Ripple has gone parabolic. The only way you can buy Ripple is through BTC and this effectively means that the rise in Ripple causes an increase in BTC and the transaction fees.
In related news, Ethereum price has jumped as well by around 2 per cent but Bitcoin Cash has suffered a decline of around 5 per cent compared to yesterday. Bitcoin Cash has garnered more support in the form of OKCoin and Huobi, but still the cryptocurrency has been declining over the last couple of days proving there is almost always an inverse relationship between Bitcoin price and Bitcoin Cash price.