Bitcoin Miners Struggle Amid Reduced Rewards, According to a Recent Research
Based on research from Kaiko, Bitcoin miners are grappling with reduced token rewards, impacting market liquidity and trading.
Following the halving event in April, a substantial decline in Bitcoin mining revenue has been observed. This halving, occurring roughly every four years, slashes mining rewards in half.
The most recent halving, the fourth since 2012, halved daily production from 900 tokens to 450, resulting in an estimated annual revenue loss of $10 billion based on previous prices.
To mitigate losses, miners have turned to transaction fees, but a decline in post-halving transaction fee surges, partly due to the influx of memecoins on the Bitcoin network, has exacerbated revenue challenges.
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Kaiko’s analysis indicates that miners, especially those with significant Bitcoin reserves, may increase selling pressure, potentially impacting cryptocurrency markets. This is compounded by the seasonal trading slowdown typical during summer.
Despite revenue declines, miners have largely held onto their reserves, contrasting with sell-offs seen during the 2022 market downturn. Major mining firms like Marathon Digital and Riot Blockchain have even increased their Bitcoin holdings, indicating renewed confidence in the digital asset market.
Marathon reportedly owns 17,631 Bitcoins valued at over $1.1 billion, while Riot owns 8,872 Bitcoins valued at over $500 million, according to Kaiko’s data.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
