Bitcoin miners are facing significant challenges amid declining revenues and shrinking transaction fees, impacting their economic viability.
Reasons for Declining Miner Revenues
The decrease in transaction fees, along with a low current price for Bitcoin, has severely impacted miners' earnings. As of June 22, daily profits reached $34 million, the lowest since April and one of the lowest figures from the past year. These changes indicate increasing financial pressure on those involved in mining activities.
Reactions from Satoshi Era Miners
Despite the challenges with revenues, there has been no mass exit among miners. According to CryptoQuant, daily Bitcoin outflows from mining wallets remain minimal, decreasing from 23,000 BTC in February to around 6,000 BTC today, with no significant movements of Bitcoin to exchanges noted. Those known as 'Satoshi era miners' have exhibited minimal market activity, suggesting a lack of selling pressure.
Implications of Rising Miner Reserves
Miner reserves have shown an upward trend, particularly among holders with balances between 100 and 1,000 BTC, suggesting strategic holdings by medium-sized operators. Since March, there has been a significant increase in these wallets, reflecting the highest totals since November 2024. The current situation points to a shift towards resource conservation and expectations of future price increases for Bitcoin. CryptoQuant's analysis indicates a lack of immediate selling pressure at current price levels.
Despite the decline in traditional revenue sources, significant sell-offs from miners have yet to materialize. Instead, they are focusing on maintaining reserves and long-term strategies, awaiting improvements in market conditions.
