The Number of Unconfirmed Bitcoin Transaction Spikes after Price Rally
The Bitcoin mempool is expanding less than a day after BTC prices rallied, retesting $13,000. The size of the mempool shows the number of unconfirmed Bitcoin transactions and is a means of determining the priority of BTC miners who have a propensity of being selective, opting to confirm transactions with high fees when prices are trending higher.
At the back of strong fundamentals, the Bitcoin price soared above Aug 2020 highs, retesting $13,000 at some point on Oct 22. However, amid the price spike, the transaction mempool expanded as miners expectedly opt to confirm transactions with high transaction fees. Ultimately, this has an impact on user experience. The more unconfirmed transactions there are, the more complaints from network users as the average transaction fees also climb higher after weeks of underperforming those in the Ethereum network.
Impact on the BTC Price:
Neutral to bearish. The climactic rise of the Bitcoin price above Aug 2020 highs is a net positive. It could be the anchor, the base for $14,000, and even $20,000 in the medium term. Nonetheless, as prices rise, the Bitcoin network could clog as FOMO kicks in forcing the mempool to expand and network transaction fees to rise. Given how multi-faceted Bitcoin price dynamics is, it will prove to be a delicate balancing act going forward.
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