Bitcoin price is down today as Binance, record high fees and a full mempool render on-chain transacting slow and expensive.
1. Binance: One of the world’s largest cryptocurrency exchanges, Binance, is under investigation by the US Department of Justice and the Internal Revenue Service. This news has caused uncertainty in the market, leading to a drop in Bitcoin’s price.
2. Record High Fees: The fees for on-chain transactions have reached record highs due to the increased demand for Bitcoin. This has made it expensive for users to transact on the network, leading to a decrease in activity.
3. Full Mempool: The mempool is the area where unconfirmed transactions are stored before they are added to the blockchain. A full mempool means that there are too many transactions waiting to be confirmed, causing delays and higher fees.
In summary, the combination of Binance’s investigation, record high fees, and a full mempool has led to a decrease in Bitcoin’s price. This highlights the need for scalability solutions to improve the efficiency and affordability of on-chain transactions.