Post-Halving Reality Hits Bitcoin Miners as Revenue Drops

Tuesday, 14 May 2024, 11:26

Bitcoin miners face financial strain post-halving as rewards reduce and fees decline. Network fee spikes provide temporary relief, but falling transaction fees add to the pressure. Challenges include reduced trading activity, likely BTC sell-offs by miners, and decreased liquidity in the market. Amidst the struggle, there's optimism for revenue bounce back in the long term.
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Post-Halving Reality Hits Bitcoin Miners as Revenue Drops

Post-Halving Pressures Mount for Bitcoin Miners Amid Declining Fees

Bitcoin miners are starting to feel pinched as halved rewards become their new reality post-halving.

A spike in network fees briefly eased their strain. Yet, declining transaction fees are now increasing financial pressure.

Kaiko Research recently reported a surge in daily average network fees after the halving.

This surge helped Bitcoin miners offset some discomfort, albeit temporarily.

  • The initial user rush to the Runes protocol has cooled, with transactions plummeting by over 4,500% from April 24 to May 14.
  • Halving events often force miners to sell BTC to cover block creation costs. Recent fee declines could renew pressures.

Bitcoin miners' profitability has hit a 3-year low, leading to significant underpayment and likely strain for less efficient miners.

Crypto analyst PlanB sees brighter future, forecasting revenue bounce back in 2 to 5 months.

Fluctuating fees and market conditions pose challenges and opportunities for Bitcoin miners. Recovery in revenue is predicted in the coming months, crucial for sector stability and growth.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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