Bitcoin $BTC miners, who keep the Bitcoin network running smoothly, are having a tough time right now. Let's break down the latest analysis from Kaiko, a top crypto research firm, to see why.

Falling Fees, Rising Concerns

  1. Fees Are Dropping: Miners earn money from transaction fees, which have nosedived from around $45 in January to just $3-$5 now as reported by Bloomberg. This drop is hard to swallow, especially since miners still have to pay hefty electricity bills and staff salaries.

  2. Halving Disappointment: In the past, Bitcoin's price would usually go up after a "halving" event, where the reward for mining new Bitcoin is cut in half. This increase would help miners balance out their reduced rewards. But after the most recent halving on April 19th, Bitcoin's price has stayed flat, leaving miners with less income.

  3. Brief Hope from NFTs: In April, there was a brief spike in transaction fees thanks to a boom in minting non-fungible tokens (NFTs). However, this was short-lived, and fees quickly fell back to their current low levels.

What Could Happen Next?

  1. Forced Selling: Some miners might have to sell their Bitcoin holdings to cover their costs. For instance, companies like Marathon Digital could be forced to offload their Bitcoin, which could push Bitcoin prices even lower.

The Bottom Line

Bitcoin miners are feeling the squeeze from falling fees and stagnant prices. According to Kaiko, we might see more forced selling and industry consolidation ahead. It looks like the Bitcoin mining world is in for some big changes!

To get full details, visit us at: https://coinsprobe.com/kaiko-analysis-plummeting-bitcoin-miner-fees-may-lead-to-increased-forced-selling/

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