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Bitcoin price today: climbs near $66k as 'Runes' launch causes spike in fees

Published 22/04/2024, 06:50
© Reuters.

Investing.com-- Bitcoin price rose slightly on Monday, steadying from recent losses as the halving event, which took place over the weekend, was largely overshadowed by the launch of a new token minting protocol on the world’s biggest blockchain.

Bitcoin rose 1% over the past 24 hours to $65,917.4 by 07:32 ET (11:32 GMT). While easing fears over a conflict in the Middle East helped improve risk appetite, the token still remained squarely within a trading range established over the past month.

Bitcoin price steadies, but transaction fees surge with Runes launch

Bitcoin’s halving event- which saw the halving of mining rewards on the blockchain, took place over the weekend with little price action.

But the world’s biggest blockchain saw a flurry of activity with the launch of the Runes protocol- which allows the minting of digital tokens on top of the Bitcoin blockchain.

The protocol was launched by Casey Rodarmor, who had previously launched the ordinals protocol that allowed users to mint non-fungible tokens on the blockchain.

But runes differ from ordinals in that they allow users to create new tokens, similar to that seen on the Ethereum blockchain.

The launch of the protocol sparked a sevenfold increase in Bitcoin transaction fees over the weekend. According to data from Blockchain.com, transaction fees hit a record high of nearly $130 on April 20, before settling lower around $35 by Monday.

Bitcoin miners to benefit from fee spike, halving disregarded

Bitcoin miners are set to benefit from the large jump in fees. The weekend spike also saw traders largely look past the impact of the halving on mining rewards.

But the halving is still expected to pressure miners in the long run.

Still, mining stocks including Marathon Digital (NASDAQ:MARA) Holdings Inc (NASDAQ:MARA), Hut 8 Corp (NASDAQ:HUT), Riot Platforms (NASDAQ:RIOT), and Core Scientific Inc (NASDAQ:CORZ) could be primed for some near-term gains, given that the spike in transaction fees point to increased revenues for the miners.

Crypto price today: Altcoins muted as US rate fears persist

Other major crypto tokens saw limited gains on Monday even as risk appetite improved amid waning concerns over an Iran-Israel war.

Strength in the dollar and the prospect of higher-for-longer U.S. interest rates limited any major upside in crypto prices. This notion also kept Bitcoin prices muted despite the increased on-chain activity.

World no. 2 token Ethereum rose 1.2% to $3,201.66, while XRP and Solana added 0.3% and 1.3%, respectively.

Thailand blocks ‘unauthorized’ crypto platforms

Authorities in Thailand have moved to block "unauthorized" crypto platforms, in a move to improve law enforcement's effectiveness in tackling online crime, as per an announcement made on Friday.

Following a meeting of the Technology Crime Prevention and Suppression Committee, the Thai Securities and Exchange Commission (SEC) was directed to provide details about unauthorized digital asset service providers to the Ministry of Digital Economy and Society, which will then block access to these platforms.

According to the announcement, the SEC has considered the impact on users and will give them time to manage their accounts before they lose access to the service.

“Therefore, the SEC requests users of the said platform to quickly withdraw their assets from the platform,” the regulator said in the announcement.

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