Bitcoin transaction fees hit their lowest levels since 2012, reducing miner income amid weaker network activity during this market cycle.
Despite low profitability, miner sell pressure remains minimal as most operations continue to hold BTC reserves without panic selling.
Record hash rate volatility and delayed difficulty adjustments suggest large miners are scaling down machines rather than exiting the market completely.
Bitcoin miners are navigating one of the toughest revenue environments in recent years, yet most are refraining from selling their holdings.
Fees at Historic Lows as On-Chain Activity Slows
According to a post from Alphractal, total fees paid across the Bitcoin network are at their lowest point since 2012. This 12-year low stems directly from reduced on-chain activity, which has shrunk miner revenues and lowered transaction fee income.
https://twitter.com/Alphractal/status/1939091165036638403
This slowdown affects profitability, especially as transaction fees represent a key supplement to the fixed block rewards. With fewer users transacting, the network offers little financial incentive beyond mined BTC. As a result, operational pressure on miners has increased, pushing them to either scale back or find alternative strategies to remain viable.
Despite these challenges, the Bitcoin network remains active above $107,000, reflecting strong price performance that may be helping miners hold their reserves.
Miners Maintain Holdings Despite Low Profit Margins
Alphractal also noted that the Miner Sell Pressure metric remains low. This indicator suggests that miners are not offloading BTC even during periods of declining margins.
Historically, miner selling has coincided with either sharp price spikes or high on-chain demand. The absence of both in this cycle points to strategic retention rather than urgent liquidation. Some mining operations appear to have scaled down their hash rate to match lower demand, rather than selling mined BTC at current levels.
This behavior implies confidence in longer-term price strength or a shift toward maintaining asset reserves over immediate profitability. Market observers are watching closely to see if this trend persists through coming quarters.
Network Adjustments Lag Behind Mining Economics
Although the Bitcoin hash rate has shown signs of decline, the network’s difficulty level has yet to adjust downward. This lag in difficulty recalibration is adding further strain to miners’ bottom lines.
At the same time, hash rate volatility is hitting record highs. Analysts suggest this is due to large mining operators temporarily shutting down ASIC machines, responding to falling revenues and softer network activity.
If this continues, it could result in delayed difficulty adjustments, further affecting earnings. For now, the mining sector appears to be in a transitional period as miners adapt to lower activity and realign with evolving network economics.
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