Bitcoin Miners Face Pressure Post-Halving

The Bitcoin mining industry is feeling the impact of the post-halving adjustments, with transaction fees plummeting, thereby reducing overall revenues and squeezing margins for miners. According to on-chain analytics firm CryptoQuant, miners have begun offloading their Bitcoin holdings in recent weeks, with the cryptocurrency’s price oscillating between $69,000 and $71,000.

CryptoQuant analysts have identified an increase in transfers from mining pools to the cryptocurrency exchange Binance as a clear indicator of this trend. On June 9, these transfers reached a two-month high, with over 3,000 BTC moved, coinciding with a notable drop in Bitcoin’s price to $66,000.

Additionally, the activity on over-the-counter (OTC) desks has surged, particularly noticeable on June 10, when miners sold 1,200 BTC—the highest daily volume recorded since March. Publicly traded Bitcoin miners, such as Marathon Digital, have also increased their selling, offloading 1,400 BTC in June, a significant rise from the 390 BTC sold in May.

Analysts point out that miner revenues have dramatically fallen by 55% from their peak in 2024, now hovering around $35 million this month. “Amidst low miner revenues post-halving, daily Bitcoin transaction fees have dropped to around 65 bitcoin from 117 prior to April 18th. Despite record-high transactions, median transaction fees in USD remain low, underscoring the pressure on miners’ income,” stated CryptoQuant.

The Bitcoin hashrate, a metric indicating the total computational power utilized in mining and processing, has seen a modest decline of 4% from 622 exahashes per second (EH/s) to 599 EH/s. This suggests that while the number of active miners remains high, the competition within the industry is still intense.

Analysts believe that prolonged periods of low revenue combined with a high hashrate could signal an approaching market bottom. “Periods when miner revenues are low and the hashrate remains high often point to potential market lows,” they noted. “Since May, miners have faced significant underpayment, suggesting we might be near a price bottom.”

This scenario presents a critical juncture for the Bitcoin mining sector, as it grapples with decreased profitability and continued high competition, potentially reshaping the landscape for the industry’s future.