How do transaction fees on the Bitcoin network relate to the BTC price?

How do transaction fees on the Bitcoin network relate to the BTC price?

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Transaction fees on the Bitcoin network fluctuate based on network demand and congestion. When many users want to send Bitcoin simultaneously, fees rise as people compete to have their transactions confirmed quickly. High transaction fees can indicate increased network activity and demand, which often correlates with rising interest in Bitcoin and can be a precursor to changes in the BTC price.

However, sustained high fees may also discourage smaller transactions, potentially limiting broader adoption in the short term. Monitoring transaction fee trends alongside the BTC price helps investors gauge user activity and network health relative to market valuation.

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