Bitcoin (BTC) saw some turbulence on Wednesday, May 11th after reports emerged that the US government was selling off confiscated Bitcoin triggered a sell-off. However, the truth was soon revealed with the US government disputing the false claims. Following the false alarm, Bitcoin managed to recovery and is currently circling the $27,400 mark.

The sudden drop in the Bitcoin price made many traders, especially Jackis, to dub the near-term lows as a “scam” move. Combined with the movements of crypto traders, the crypto markets were left sensitive and shaken by this scare, as many traders were in favor of further Bitcoin downside, eyeing targets in around $25,000.

Commentators like Tedtalksmacro were not surprised by the trending news, simply labeling May 10 as “just another day in crypto” and attributing the trend of risk assets to inflation data within the US. On a positive note for Bitcoin holders, the past 24 hours has restored hope as the costs associated with Bitcoin transactions are rapidly declining. According to data from Mempool.space, the fee rate was as low as just $1.80 per byte, or 47 satoshis. Even on May 10, the transaction fee had dropped over 50% since the day before.

These developments have drawn the attention of lead on-chain analyst at Glassnode, Checkmate, who mocked those suggesting a change in Bitcoin rules due to the short-term fee spike. He believes that tenors inscriptions and increased demand on the blockchain are driving this spike and that the fee crisis is temporary. These developments continues to showcase Bitcoin's ability to recover and display market strength.



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