Bitcoin News Today: Bitcoin Miners Sidelined as Fee Revenue Hits Historic Lows

Bitcoin daily transaction fees have fallen to 4.09 BTC, marking the lowest coin-denominated level since 2011, according to data from Glassnode. This development reflects a broader trend of declining network activity and transaction demand. The drop is notable not only for its magnitude but also for its historical context, as the last time Bitcoin saw such a low level of transaction fees was more than a decade ago. This decline underscores the current dynamics of the Bitcoin network, where lower user activity and reduced competition for block space have resulted in significantly lower fees.

Average transaction fees in USD also reflect a downward trend. According to Blockchain.com, the average Bitcoin transaction fee stood at $0.6768 on August 23, 2025, a 22.49% decrease from the previous day and a 10.77% drop compared to the same day one year prior. These figures align with broader patterns observed in recent months, where fees have fluctuated in response to network congestion levels. The average daily fees are calculated by dividing the total transaction fees per day by the number of transactions processed, a metric that provides a clear indicator of the demand for block space.

Network activity has also seen a significant shift in recent months. Data from VanEck’s ChainCheck report indicates that median Bitcoin transaction fees dropped 13% to 421 sats, the lowest since September 2024. This decline is partly attributed to reduced ordinal inscription activity, which had previously driven up transaction volumes. The report notes that Bitcoin network transactions increased by 26% month-on-month to 12.9 million, the highest level since November 2024. However, despite the rise in transaction volume, the overall fee revenue for miners has fallen to historically low levels. In July 2025, transaction fees accounted for less than 1% of total block rewards, a record low that highlights the current state of the network.

The implications of these trends for miners are significant. While block rewards remain the primary source of miner revenue, the recent drop in transaction fee income has added financial pressure on mining operations. According to a report from The Miner Mag, Bitcoin’s network hash price has remained below $60 per petahash per second, indicating that miners are struggling to maintain profitability despite rising Bitcoin prices. The report also highlighted that U.S. miners face additional challenges in the form of new tariffs on imported mining equipment. CleanSpark and IREN, two major U.S. mining firms, are currently contesting potential tariff liabilities totaling over $285 million, which could further strain their financial positions.

The broader market context also plays a role in shaping these developments. As noted in VanEck’s ChainCheck, Bitcoin prices reached a new all-time high above $124,000 in early August 2025, driven by strong speculative demand and favorable funding rates in futures markets. Despite these price gains, the low volatility environment has constrained the profitability of options and derivatives markets, with implied volatility dropping to 32%, well below the one-year average of 50%. This trend has also affected Digital Asset Treasuries (DATs), where mNAV compression has been observed due to reduced issuance capacity in a low-volatility environment. As a result, the financial calculus for miners and institutional investors is being recalibrated, with some companies exploring alternative revenue streams such as AI and high-performance computing infrastructure.

Source: [1] How to track and optimize Bitcoin transaction fees (https://crypto.news/how-to-track-and-optimize-bitcoin-transaction-fees/) [2] Bitcoin Average Transaction Fee - Real-Time & Historical ... (https://ycharts.com/indicators/bitcoin_average_transaction_fee?referrer=KM13492686) [3] VanEck Mid-August 2025 Bitcoin ChainCheck (https://www.vaneck.com/us/en/blogs/digital-assets/matthew-sigel-vaneck-mid-august-2025-bitcoin-chaincheck/) [4] US Bitcoin Miners Face $100M+ in Tariff Liabilities as New Asia Import Duties Take Effect (https://www.coinspeaker.com/us-bitcoin-miners-face-100m-tariff-liabilities-asia-import-duties-take-effect/) [5] US Bitcoin Miners Face $100M+ in Tariff Liabilities as New Asia Import Duties Take Effect (https://www.mexc.com/en-GB/news/us-bitcoin-miners-face-100m-in-tariff-liabilities-as-new-asia-import-duties-take-effect/68343)