According to Bloomberg, Bitcoin network fees have significantly decreased, putting pressure on miners' revenue. The average price of these fees has dropped to between $3 and $5, a significant decrease from the $45 average in January, as per data from Kaiko. This decrease has made the mining process less profitable, as costs such as energy, wages, and rent remain practically unchanged.
In the past, Bitcoin price rallies following a halving have typically helped miners offset the drop in rewards. The price of Bitcoin has increased after the previous three halvings. However, Bitcoin's price has remained relatively stable since the software change on April 19.
In April, fees had spiked to almost $150 following the halving, due to a surge in nonfungible tokens being minted on the Bitcoin blockchain. This increase provided a short-term relief for miners before the fees returned to average levels.
One of the largest Bitcoin miners, Marathon Digital, sold 390 Bitcoin in May and plans to sell more tokens to manage its finances. According to Kaiko, the risk of forced Bitcoin selling from miners may continue in the coming months.
The research firm also predicts that the revenue squeeze will lead to mergers as miners seek to consolidate assets and increase efficiency. This consolidation trend is expected to continue as the impact of the halving reverberates throughout the industry. Kaiko cited the example of miner Riot Platforms Inc., without providing further details.
