Bitcoin Network Fees Dropped 90% – Miners Will Likely Keep Selling

A recent report by Kaiko Research revealed that Bitcoin miners are likely to continue selling their assets due to reduced rewards and plummeting network fees.

After the halving of Bitcoin in April, network fees dropped by 90%, from $45 in January 2024 to between $3 and $5.

In addition, the halving event also saw the rewards of each block decrease from 6.25 BTC to 3.125 BTC, while mining costs increased.

The price of Bitcoin remained relatively flat, which provided some financial relief for miners.

In response, Marathon Digital sold 390 BTC in May and plans further sales. This could cause Bitcoin’s price to drop if more miners join them. Some miners are diversifying their activities, such as mine other cryptocurrencies as Kaspa (KAS).

Financial pressures lead to industry consolidation as seen by the attempt of Riot Blockchain to acquire Bitfarms Ltd. and the acquisition of Grid Infrastructure Inc. by CleanSpark Inc. for $155 million.

As miners adapt to these challenges, we may see more strategic mergers and acquisitions aimed at maintaining profitability in the sector.