Bitcoin rose 1.4% over the past 24 hours to $65,917.5 by 01:19 ET (05:19 GMT). While easing fears over a conflict in the Middle East helped improve risk appetite, the token still remained squarely within a trading range established over the past month.
Bitcoin’s halving event- which saw the halving of mining rewards on the blockchain, took place over the weekend with little price action.
But the world’s biggest blockchain saw a flurry of activity with the launch of the Runes protocol- which allows the minting of digital tokens on top of the Bitcoin blockchain.
The protocol was launched by Casey Rodarmor, who had previously launched the ordinals protocol that allowed users to mint non-fungible tokens on the blockchain.
But runes differ from ordinals in that they allow users to create new tokens, similar to that seen on the Ethereum blockchain.
The launch of the protocol sparked a sevenfold increase in Bitcoin transaction fees over the weekend. According to data from Blockchain.com, transaction fees hit a record high of nearly $130 on April 20, before settling lower around $35 by Monday.
Bitcoin miners are set to benefit from the large jump in fees. The weekend spike also saw traders largely look past the impact of the halving on mining rewards.
But the halving is still expected to pressure miners in the long run.
Still, mining stocks including Marathon Digital Holdings Inc (NASDAQ:MARA), Hut 8 Corp (NASDAQ:HUT), Riot Platforms (NASDAQ:RIOT), and Core Scientific Inc (NASDAQ:CORZ) could be primed for some near-term gains, given that the spike in transaction fees point to increased revenues for the miners.
Other major crypto tokens saw limited gains on Monday even as risk appetite improved amid waning concerns over an Iran-Israel war.
Strength in the dollar and the prospect of higher-for-longer U.S. interest rates limited any major upside in crypto prices. This notion also kept Bitcoin prices muted despite increased on-chain activity.
World no. 2 token Ethereum rose 1.1% to $3,208.95, while XRP and Solana added 1.8% and 0.5%, respectively.
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