Why is Bitcoin Fee So High? & How to Lower It

Have you ever tried to send Bitcoin and noticed that the fee was just too high?

You’re not alone.

Every day, people wonder why Bitcoin fee is so high, because they’re confused or frustrated by rising transaction costs.

In 2025, Bitcoin is being used more than ever, which is great but that also means that transaction fees can go up quickly, especially when the network is busy.

This guide will explain why Bitcoin fee is high, how Bitcoin transaction fees are calculated and how to reduce Bitcoin fees.

What Are Bitcoin Transaction Fees?

Every time you send Bitcoin, you pay a small transaction fee.

It is not a hidden charge by your wallet or app, rather it goes to miners (people who help confirm transactions and secure the network).

The transaction fees are important because they help the miners to keep the system running, control spam and make sure urgent transactions go through quickly.

Without fees, there’d be no reason for miners to include your transaction to the next block and that’s why your fee matters.

A higher fee means your transaction will likely be picked sooner.

A very low fee means your Bitcoin could stay unconfirmed for a long time.

Over time, as Bitcoin’s block rewards reduce, transaction fees will become even more important to miners.

That’s why fees are part of the system and why they might feel high during busy periods.

Who Sets Bitcoin Fees?

Bitcoin fees are not set by one person or a company.

They are set or determined by the network, based on how busy it is.

When too many people send Bitcoin at the same time, the fees go up. Miners pick which transaction goes first and this is dependent on how high the fee is. 

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Why is Bitcoin Fee So High in 2025?

Here are reasons why Bitcoin fees are so high in 2025:

1. Network Congestion

When a road is too busy, there may be traffic congestion and movements slow down.

As with a busy road, if a lot of people try to send Bitcoin at once, the network becomes congested, leading to slow transactions. 

People start offering higher fees to get theirs confirmed faster and that pushes up the average fee.

This is very common during bull runs or big news in crypto.

A popular event such as a big company accepting Bitcoin or an increase in price, can lead to thousands of users trying to move BTC at once. 

2. Limited Block Space

There’s limited block space on the Bitcoin network.

This means that it can only accept some transactions at the same time.

To get picked first, people raise their fees.

Blocks are about 1MB in size, which means only a few thousand transactions can go through every 10 minutes.

If yours doesn’t make it in, you either wait longer or pay a bit more to move faster.

3. Increased Demand

Bitcoin’s popularity keeps growing. Transactions and fees increase with the growing amount of users. 

Between 2023 and 2025, over 420 million people globally were estimated to have adopted cryptocurrency.

That’s a lot more people sending, receiving, or converting Bitcoin and they all add pressure to the network.

The more people there are, the more competition there is to get into each block.

4. NFTs and Rise of Ordinal Inscriptions

A new trend called Ordinal Inscriptions allows people to store NFTs and other data directly on the Bitcoin blockchain.

These special transactions take up space, leaving less room for regular users and raising the cost of sending BTC.

These digital files are not like regular Bitcoin payments; they’re much heavier.

They push out basic transactions and force users to pay more if they want their BTC to be sent quickly.

5. Miner Behavior

Miners can pick any transaction they want to process, and they usually go for the ones with the highest fees first because it means more money for them.

If your fee is low, they might skip it and move on to others. That’s why your transaction could end up waiting for a long time, sometimes even hours or days.

You can use Breet’s real-time fee calculator to check if the current Bitcoin fee is high before you make a transaction. It helps you avoid overpaying when the network is busy.

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What Causes Surge in Bitcoin Transaction Fees?

As aforementioned, Bitcoin fees go up when the network gets too busy. It could be worse sometimes depending on certain factors like:

1. Bitcoin Halving: In April 2024, the reward miners earn for keeping the system running was cut into half. To make up for their loss, miners now prefer transactions with higher fees. Therefore, users raise their fees to get faster confirmation.
2. Ordinals: Ordinals let people store images or files on the Bitcoin block chain. These transactions are large and take up space, thereby, increasing fees for everyone.
3. Runes: Runes are just like ordinals but carry more data. This means that it also takes up more space and makes the network crowded. This leads to a surge in fees.

How Bitcoin Fee is Calculated

Bitcoin fees are not based on how much money you are sending. Instead, they are calculated by:

• Transaction size
• How busy the network is
• The fee rate (measured in sats per byte)

So, a small transaction in BTC can still have a high fee if it takes up a lot of space. During high traffic, even small transactions need higher fees to go through quickly.

For instance: If you are sending 0.001 BTC but your transaction is large in size (maybe it includes multiple addresses), your fee could still be high. Meanwhile, someone sending 1 BTC in a small transaction might pay less.

Most wallets automatically calculate the right fee based on network activity and not transaction amount.

However, you should know what’s happening behind the scenes, as it will help you avoid sending Bitcoin when the fees are very high.

5 Practical Ways to Lower Bitcoin Transaction Fees

Here are 5 simple but feasible tips that can help lower Bitcoin transaction fees:

1. Use SegWit Addresses

SegWit (short for Segregated Witness) makes transactions smaller in size and smaller means cheaper. If your wallet uses addresses that start with “bc1”, you’re already using SegWit.

SegWit can reduce your fee by up to 40% depending on the transaction. If your wallet or exchange doesn’t support it, consider switching to one that does.

2. Send Bitcoin During Off-Peak Hours

Fees are often lower late at night or on weekends, when fewer people are using the network.

If your transaction is not urgent, wait for a quieter time.

You can monitor fee trends to show you when the network is busy and when it’s calm. This makes it easier to plan and avoid high costs.

3. Choose Wallets That Let You Set Custom Fees

Some wallets allow you to manually choose your fee. This is useful if you are willing to wait longer for a lower fee.

If you are not in a hurry, you can set a lower sats-per-byte rate and let your transaction take its time. It’s a smart way to save money, especially during less urgent transfers.

4. Batch Transactions

If you’re sending Bitcoin to multiple people, try sending them all in one go.

This is called “batching” and it saves you money compared to sending each one separately.

Some wallets support batching automatically.

This is especially useful for business owners or people who send to friends often. It keeps fees lower and avoids sending several separate transactions.

5. Try Layer 2 Solutions (Like Lightning Network)

This is a faster and cheaper way to send Bitcoin, especially for small or frequent payments. Some wallets already support it.

Lightning is growing quickly and allows almost instant BTC transfers with little to no fee.

It’s a good option if you send money often and want to avoid the Bitcoin main network during busy times.

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Is It Worth Paying Bitcoin High Fees? When to Wait vs When to Pay

So, is it worth it if you pay high transaction fees? This will help:

Pay the fee if:

1. The transaction is urgent
2. You’re sending a large amount and don’t want delays
3. You’re trying to complete a time-sensitive trade or payment

Sometimes it is worth paying the extra fee if waiting could cause you to lose money, miss a deadline, or delay something important.

Wait or use alternatives if:

1. The fee is unusually high
2. Your transaction is not urgent
3. You can use the Lightning Network or send at a different time

Bitcoin Transaction Fee Comparison

Notes:

• sat/vB = satoshis per virtual byte (unit used for Bitcoin fees)
• Fees may fluctuate depending on Bitcoin network congestion.
• Binance Wallet refers to fees for internal transfers or Binance Pay, not blockchain withdrawals.

Which Bitcoin Wallet Has the Lowest Fees?

When it comes to Bitcoin wallets with the lowest transaction fees, non-custodial wallets (where you control your own keys) often give you more control over fees. Some also use features like SegWit or Lightning Network to reduce costs. Here are the top 5 Bitcoin wallets known for low fees:

1. Electrum Wallet
   Electrum is a lightweight wallet that lets users manually set their own transaction fees, giving you full control. It also supports SegWit, which helps cut down fees significantly.

2. BlueWallet
   BlueWallet supports both on-chain Bitcoin and Lightning Network transactions. If you want extremely low fees, using the Lightning Network via BlueWallet is one of the cheapest options.

3. Muun Wallet
   Muun Wallet automatically routes payments through the Lightning Network when possible, helping reduce transaction fees. It’s user-friendly and handles the technical stuff for you.

4. Phoenix Wallet
   Phoenix is a Lightning-enabled wallet that charges very low fees for small and fast transactions. It’s ideal for users who want to avoid high Bitcoin on-chain fees.

5. Trust Wallet
   Trust Wallet supports Bitcoin and lets users adjust gas/fee settings manually. While not as advanced as Electrum, it still offers relatively low fees and is easy to use on mobile.

FAQs on Why Bitcoin Fee is High

1. How much is Bitcoin transaction fee?
Bitcoin transaction fees vary based on network congestion, but they typically range from $1 to $10. During peak times, they can go higher. You can check the current average fee on sites like mempool.space.

2. Why is Bitcoin fee so high?

The network is likely busy. When more people are sending Bitcoin at the same time, fees go up.

3. How can I check Bitcoin fee before sending?

You can use the Breet app which shows real-time Bitcoin fees using its built-in calculator.

4. Can Bitcoin reduce over time?

Yes! Bitcoin fees rise and fall depending on how busy the network is. When the traffic drops, so do the fees.

5. What’s the cheapest way to send Bitcoin?

Using SegWit addresses, sending at off-peak times, or switching to the Lightning Network.

6. Will Bitcoin fees ever go away completely?

No. Fees are part of how Bitcoin works. But you can learn how to pay less, just like you’ve read in this article.

Conclusion 

So, why is Bitcoin fee so high right now? It’s mostly because of how many people are using the network at once and how Bitcoin itself works.

But the good news is: you can avoid high fees with the right knowledge and tools. Remember to:

• Use SegWit
• Send at off-peak hours
• Choose wallets that let you control fees
• Try batching
• And always check the current network status before sending

Platforms like Breet make this even easier by helping you track fees in real time so you know exactly what to expect before you hit “send.”

Happy Trading!