Bitcoin Miner Daily Revenue Nosedives by One-Third in Four Months

IconCryptoNewsTerminal Staff03 Jul, 2024

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Bitcoin Miner Daily Revenue Nosedives by One-Third in Four Months

Bitcoin miner daily revenue has experienced a sharp decline, falling by a third to $29 million since early March, according to data from CryptoQuant reported by Coindesk. The data suggests that this decrease is largely attributed to two factors: the halving of block rewards and a drop in transaction fees. The halving event, which occurs roughly every four years, reduces the number of bitcoins rewarded to miners for each block they process. This halving, which took place in May 2020, resulted in a significant reduction in miner revenue. Additionally, decreasing transaction fees on the Bitcoin network have further diminished their income. Furthermore, the analysis from CryptoQuant indicates that miner capitulation, a scenario where miners sell their Bitcoin holdings due to financial strain, is currently at levels comparable to those observed during the FTX collapse in December 2022. This behavior suggests that miners are facing significant financial pressure and may be forced to sell their Bitcoin reserves to cover operating costs.

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