Bitcoin Miners Revenue Drops 30% Amid Fee Decline

Bitcoin miners are currently experiencing a significant decline in revenue, primarily due to a drop in transaction fees. As of June 22, daily mining income plummeted to $34 million, marking the lowest figures since April and among the weakest levels in the past year. This downturn is attributed to the reduction in transaction fees and Bitcoin’s local low pricing, which has further squeezed miner revenue. The network’s total hashrate (computing power) has dropped by 3.5% since June 16, adding pressure on miners whose profit margins are squeezed even tighter post-halving.

Despite the challenging conditions, there has been no significant wave of closures or surrender from miners. Daily outflows from miner wallets remain low, with the amount of Bitcoin exiting these wallets daily dropping from 23,000 BTC in February to around 6,000 BTC. There has been no notable increase in mass transfers to exchanges, indicating that miners are not rushing to sell their holdings. This trend is further supported by the lack of significant activity in the wallets of “Satoshi era miners,” who were active in the early years of the Bitcoin network. Throughout 2025, only 150 BTC were sold by these miners, a decrease from about 10,000 BTC in 2024. These miners are considered indicators of long-term trends, and their low activity suggests there is no selling pressure on the market driven by miner actions.

Data reveals an upward trend in miner reserves, particularly among addresses holding between 100 and 1,000 BTC, typically controlled by mid-sized miners. Since March, these addresses have added a total of four thousand BTC, reaching the highest wallet balances since November 2024. Experts speculate that miners prefer to cover expenses with cash reserves or are holding out for a Bitcoin price recovery. Observations indicate there is currently no selling pressure at these price levels. This development highlights the absence of selling pressure from miners at current price levels. While Bitcoin miners face increasingly challenging profitability conditions, they have not turned to large-scale selling for liquidity. Despite the revenue decline, there has been no significant BTC sale compared to previous periods. The increase in miner reserves indicates a prioritization of long-term expectations among investors, with no immediate selling pressure noted.

The drop in transaction fees is a critical factor in the revenue decline for Bitcoin miners. Transaction fees are an essential component of miners' earnings, as they compensate for the computational power and energy required to validate transactions on the Bitcoin network. With fees falling sharply, miners are earning less for their efforts, which can lead to reduced profitability and potentially force some miners to shut down their operations. The hash price, which measures the revenue per unit of computational power, has also plummeted, further highlighting the financial strain on miners. The stabilization of Bitcoin prices near local lows has also contributed to the revenue decline. When Bitcoin prices are stable or declining, miners earn less from the block rewards, which are the newly minted Bitcoins awarded to miners for adding a new block to the blockchain. With lower transaction fees and stable or declining Bitcoin prices, miners are facing reduced overall incentives to stay online and continue their operations. This situation can lead to a decrease in the network's hash rate, which measures the total computational power of the Bitcoin network. A lower hash rate can make the network more vulnerable to attacks and reduce its overall security.

The decline in miners' revenue has raised concerns about the sustainability of the Bitcoin network. Miners play a crucial role in maintaining the network's security and integrity by validating transactions and adding new blocks to the blockchain. If miners are forced to shut down their operations due to financial difficulties, it could lead to a decrease in the network's hash rate and compromise its security. Additionally, a reduction in the number of active miners could lead to longer confirmation times for transactions, making the network less efficient and user-friendly. The current situation highlights the challenges faced by Bitcoin miners in a volatile market environment. Miners must adapt to changing market conditions and find ways to reduce their operational costs to maintain profitability. Some miners may turn to alternative revenue streams, such as cloud mining or offering mining services to other cryptocurrencies, to diversify their income and mitigate the impact of declining transaction fees and Bitcoin prices. Additionally, miners may invest in more energy-efficient mining equipment to reduce their operational costs and improve their profitability.