Why is bitcoin price not dropping when sending fees are so high?

[Kossa]

Price is not driven by people who hold BTC but by ones who are active on exchanges. Traders keep their assets on them and they do not care much about transaction fees. If they need to transfer value through different exchanges they just do it by quicker cryptos.

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[hatshepsut93]

Does anyone know why this is the case?  Surely it would drop right since the fees are outrageous and would move other people to buy other coins?

Seems like the market is telling us that Bitcoin investors don't care about rising fees. If cheap fees were important to the market, it would have a discernible effect on supply and demand.

If most people are simply holding BTC as an investment, they're not even paying fees to use Bitcoin, so it doesn't matter to them. At the same time, transaction volume is generally increasing, meaning that people still find value in on-chain transactions at these fee rates. At some point, equilibrium will be found, and transaction volume will drop due to growing fees. That will naturally cause network fee rates to drop.

You are correct, and there's a good reason why investors don't value cheap fees much and don't move to other coins that have higher capacity - investors mostly care about Bitcoin's security and decentralization features, and they know that Bitcoin is decentralized because of its big network of nodes, and that raising blocksize would result in centralization issues. Bitcoin is really digital gold, and moving gold is quite expensive, so people who are looking for decentralized currencies should use some altcoins since they don't need Bitcoin's mega security for their $100 transactions.

[moonchaser_babylove28]

Does anyone know why this is the case?  Surely it would drop right since the fees are outrageous and would move other people to buy other coins?

My stand on this is that people nowadays are not looking at bitcoin as payment system, but more of an asset where the value is keep raising as the time goes by. If most of the holders are thinking this way we can safely say that price of bitcoin will definitely soar due to holding.

[claydeey]

The situation only explain the law of supply and demand the higher the demand is the more it is likely to increase its price. Investors who are investing millions of dollars or thousand of dollars never mind the fees if they are getting more than what they pay for it.

[thulisman]

Due to the high demand for bitcoin transactions, commercial sites have increased their fees to make more profit. Also, due to the difficulty of exploiting bitcoin, it is also possible that the transaction fee paid to the miners will increase. These have led to increased bitcoin transaction fees due to high demand.

[fishbonez11]

Does anyone know why this is the case?  Surely it would drop right since the fees are outrageous and would move other people to buy other coins?

Cause when you are hodling you don't care about transaction fees.

OK let's assume you are right. --Because everybody is holding-- would be the answer to the OP's question. But, let me ask this: why are the fees so high and transaction backlog 130k+ if everybody is holding (so nobody is transacting, I assume)?

Actually the OP is right, what we are seeing right now makes little sense and begs for explanation

EDIT: maybe the correct answer is that everybody is holding and if not - the demand is on the buying side.

Agreed. I think that more people is on the buying side and holding later that's why the bitcoin price is not dropping even if the sending fees are so high. It seems that bitcoin has been transitioning from a mode of transaction into an investment thing, that's why few people are concerned that transaction fees are high.

[Baimovic]

I think it's worth the bitcoin price today, so I suggest you have a lot of bitcoin, so that your results will be felt. if you have a bit bitcoin, it's better to hold it first.

[TTITA]

Does anyone know why this is the case?  Surely it would drop right since the fees are outrageous and would move other people to buy other coins?

Cause when you are hodling you don't care about transaction fees.

OK let's assume you are right. --Because everybody is holding-- would be the answer to the OP's question. But, let me ask this: why are the fees so high and transaction backlog 130k+ if everybody is holding (so nobody is transacting, I assume)?

Actually the OP is right, what we are seeing right now makes little sense and begs for explanation

EDIT: maybe the correct answer is that everybody is holding and if not - the demand is on the buying side.

That's not the right analogy, just the opposite. When unconfirmed transaction in network reach up 100k more, this can be happen caused some likes issue about a new hard fork 'smart contract' which they will make Bitcoin great again, it will be launched on last December 12.
So, many traders exchange their altcoins to bitcoins. As usual high fees appear when the network reaches 75k unconfirmed transaction.

[oaz7t]

People are holding bitcoins because of the rising price and all!
So for them fees is not a major concern

[Tamim121]

Sending fees are not the main reason for bitcoin price grow up. When demand is higher than production then bitcoin price grow up. In this time you can hold bitcoin.

[orka39]

Does anyone know why this is the case?  Surely it would drop right since the fees are outrageous and would move other people to buy other coins?

This is very good question. If anybody know the real answer please tell us here.
I dont really know why? But small anwer maybe worth, the fee of sending bitcoin does not change the trust of people to bitcoin itself. So the fee mean nothing to bitcoiners.

[bill gator]

Does anyone know why this is the case?  Surely it would drop right since the fees are outrageous and would move other people to buy other coins?

If people were unwilling to pay the transaction fees the transaction backlog and transaction fees would dry up extremely quickly. The fees operate on supply and demand, the more transactions there are normally means people get antsy about moving their coins and start congesting the network with high fee transactions so that they will go through first. I would be willing to say that there is no (or next to none) correlation between transaction fees and a decrease in bitcoin price. It's not as though these transaction fees are arbitrarily imposed upon each transaction; it very much operates on supply and demand, and right now there is a high demand for bitcoin transaction, which means higher fees, not lower price. In my opinion you're trying to connect two dots on different pages, they just don't go together. At best, high-volume of transactions and high transactions fees would correlate with price drops about 50% of the time; because if you simplify price jumps and falls pretty rigidly it could be either dumps or pumps.

[BitcoinHodler]

- it is because transaction fees aren't that high. even if you are paying $12 per transaction, many still wouldn't mind. simply because even if you have invested $100 in bitcoin a couple of days ago when it was $15,000 now you have more than $126 and even if you pay $12 fee you still make $14 profit.

obviously nobody invests $100. with bigger investment the fee becomes negligible.

additionally it has not been that long since fees were this high. people may be unsatisfied about it, but it takes a lot longer and lot higher fees to make them change their minds about investing in bitcoin.

[hopepears]

Owing to the high fees many users would just opt to hold on to their bitcoins. Others want to acquire btc as well which is why transaction fees skyrocket.