Bitcoin fees have fallen to their lowest level in more than a decade, reflecting weaker demand. Altcoins are attracting capital as BTC holders diversify, though long-term conviction remains notable.
Bitcoin’s [BTC] price action has witnessed fading momentum on its price action recently. Glassnode data indicated that the daily Bitcoin transaction fees, measured on a 14-day average, have dropped to just 3.5 BTC.
The last time fees were this low was in late 2011, when the network was still in its early stages.
The drop points to a shrinking market activity on the chain, suggesting that demand for block space has faded considerably over the past weeks.
Interestingly, alongside the fading transaction fees, the number of active sending addresses has spiked over the last 48 hours according to AMBCrypto’s of CryptoQuant data.
This spike in active sending addresses usually signals holders moving coins out of their wallets — often to re-balance or take positions elsewhere.
The timing looks perfect.
Most major altcoins have logged strong gains in the same period, which adds weight to the idea that investors are rotating capital away from Bitcoin in search of higher short-term returns.
Despite the aforementioned on-chain developments, Bitcoin has also recorded a sharp rise in exchange outflows over the past week.
Analysts interpreted that as a bullish sign, since long-term holders move assets into self-custody. But when paired with the uptick in sending activity, the picture becomes less clear.
Part of those outflows could still be headed into altcoins rather than cold storage, reflecting a wider repositioning across the market.
All in all, the BTC metrics suggests a market in transition.
Bitcoin appears to be losing some trading momentum to altcoins, which have been the stronger performers over the last 48 hours.
