You can’t escape the grumbling if you hang out in crypto circles. People are losing it over Bitcoin fees lately, and they’re not wrong. A few years ago, you could send Bitcoin for just a few cents. These days, it’s more like $10, $15, or even higher when the network gets congested.

While it’s easy to think Bitcoin fees are high just because “too many people are using it,” the truth is a bit messier. It’s not just about traffic, it’s about how Bitcoin is built. From block size limits to NFT congestion and the 2024 halving cutting miner rewards, several factors are piling on to push fees higher.

This article will explain why Bitcoin fees are so high right now, how the system works, and what you can do about it.

What Are Bitcoin Fees?

Bitcoin fees

Bitcoin fees are a small amount you pay every time you send a transaction. This isn’t a hidden charge from a bank; it’s just how Bitcoin gets the network to process your payment. Since Bitcoin has real-world value, that small amount can still add to actual money, sometimes more than you’d like.

It pays for space on the blockchain. The more space your transaction takes up, the more you pay. 

If you’re using your own Bitcoin wallet, you can pay more to speed things up or less if you’re not in a hurry. But if you’re using an exchange that handles transactions, they will often set the fee for you automatically.

Reasons Bitcoin Fees are High

Several factors have pushed Bitcoin fees through the roof lately. Let’s unpack them:

1. The Bitcoin Network Is Busy

Bitcoin has a limit on how many transactions it can handle. Only about 7 transactions per second can fit into the network. Compare it to Visa’s 24,000 transactions per second, and you see the problem.

This limitation exists because Bitcoin is decentralized, meaning no person or company controls it. Instead, thousands of computers around the world work together to keep it running and secure. The network’s security comes from keeping blocks small and easy to verify. 

Each block can only hold about 1 MB of data. Even with upgrades like SegWit, the size can sometimes stretch to 4 MB, and that’s still too small for the number of people trying to use Bitcoin.

So what happens when everyone wants to send BTC at the same time? Traffic jam. There’s not enough room in the next block, so people start bidding higher fees to push their transactions to the front.

Bitcoin tried to solve this issue with Layer-2 technology like the Lightning Network. Lightning can handle thousands of transactions per second off-chain, with tiny fees and instant payments.

But here’s the catch: Not everyone is using Lightning yet. Most people are still sending Bitcoin directly on the main network (Layer-1), which is why fee spikes are still a big problem.

2. Ordinals, Runes, and Bitcoin NFTs

Yes, Bitcoin NFTs are a thing now, all because of stuff like Ordinals and Runes. People inscribe art, collectibles, and even meme coins onto the Bitcoin blockchain.

Cool? Sure. But it also clogs the network, making it harder and more expensive for regular Bitcoin transactions to go through.

This got even worse after the Bitcoin halving 2024. Bitcoin miners earned a record-breaking $78.3 million in transaction fees in just one day. More than the actual Bitcoin block rewards for the first time. And it wasn’t just people moving Bitcoin around; the biggest fee bids came from users rushing to mint new Runes and NFTs.

Also, miners’ rewards were sliced in half due to the halving, from 6.25 BTC per block to just 3.125. With less BTC to earn, Bitcoin miners started leaning more on transaction fees, prioritizing the transactions that pay the most.

So when fees spike, miners naturally prioritize the transactions that pay the most, and this pattern still happens today whenever the network gets flooded.

3. Wallets Sometimes Overestimate Fees

Sometimes, Bitcoin fees stay high even when the network isn’t that busy, and it’s not always because of human panic bidding.

A good example is Block 840,000 in April 2024. It landed right after the Bitcoin halving, so everybody and their grandma wanted their transactions included. Some offered massive fees just to be part of Bitcoin history.

The fallout? That one block raked in 36 times the usual fees. A mining pool basically hit the jackpot, walking off with 37.626 BTC in fees alone.

However, fees didn’t immediately return to normal even after the stampede ended and the backlog cleared. Why? Most Bitcoin wallets often suggest fees based on recent activity. After a big spike like that, most wallet apps assume the network is still congested, so they automatically recommend higher fees just to be safe.

That leads to a bidding war between wallets, where everyone’s software is outbidding each other even when the traffic jam is technically over.

How Are Bitcoin Fees Calculated?

Bitcoin fees are calculated based on how much space your transaction takes up in the block, rather than how much you send. 

Picture each Bitcoin transaction like a tiny digital file. If you’re combining lots of little Bitcoin bits from different wallets, it gets bigger and more complicated, and you have to pay more to process it.

It is not that different from shipping packages by weight, instead of value. Whether you’re mailing a diamond or a bag of rocks, the heavier package costs more.
In Bitcoin, the weight is measured in bytes, which sets your fee.

The typical Bitcoin fee formula is: Fee (in sats) = Transaction size (in bytes) × Fee rate (in sats per byte)

Example:

If your transaction is 250 bytes and the current network fee rate is  80 sats/byte, then: 250 × 80 = 20,000 sats. That’s about $13–$15, depending on Bitcoin’s price at the time.

What Is the Current Bitcoin Fee?

Bitcoin fees don’t have a fixed price. Sometimes it’s calm, other times it’s like trying to book an Uber during surge pricing. Fees go up and down depending on how busy the network is.

At the time of writing this article, the average Bitcoin transaction fee is around $1 to $2. Not terrible, but it doesn’t always stay that way.

When the network gets flooded, like during NFT mints, memecoin launches, or sudden market sell-offs, fees can shoot up to $10, $15, or even $35+ if you want your transaction to go through fast.

So, while Bitcoin fees are calm today, they can spike without much warning. If you want to monitor events in real time, check out mempool.space. It shows you exactly how busy the network is and what fees people are paying right now.

Frequently Asked Questions (FAQs) About Bitcoin Mining Fees

Can I avoid Bitcoin fees?

No, you can’t avoid them entirely. But you can lower them by timing and sending transactions during off-peak hours, using cheaper wallets, and using the Lightning Network for small payments.

Why do Bitcoin fees change so much?

They change so much because Bitcoin fees are like surge pricing. When more people want to send Bitcoin at the same time, fees go up. When things quiet down, fees drop.

Do I have to pay higher fees if I’m sending more Bitcoin?

No. Bitcoin fees are based on transaction size in bytes, not the amount of Bitcoin you send. So, sending $10 can cost the same as sending $10,000, depending on how complicated your transaction is.

What is the cheapest way to send Bitcoin?

The cheapest way to send Bitcoin is by using the Lightning Network, where fees are lower. If you’re sending Bitcoin on-chain, try doing it during off-peak hours like late nights or weekends, and use a wallet that allows you to set custom fees so you don’t overpay.

Conclusion

Bitcoin is still the king of crypto, but it comes with its baggage, and fees are part of the deal. Between network congestion, NFTs jamming the blockchain, and miners hustling even harder after the halving, it’s no surprise that you’re paying more to move your BTC.

The good news is that you now know why it happens, how it works, and what you can do when fees get crazy. So next time someone complains about Bitcoin fees, you can offer some knowledge, and maybe a cheaper way to send your coins too. 

Last updated on August 10, 2025