Data from Bitbo reveals a concerning trend for bitcoin miners, as they experienced their worst revenue month in nearly a year. In August, BTC mining activities only generated $827 million, marking a significant drop of over 10% from the previous month’s $927.35 million.
On-Chain Fees
On-chain fees were also impacted, with network participants receiving $20.76 million in August, a decrease from the $24.9 million recorded in July. This decline is even more pronounced when compared to the $281 million in transaction fees in April, despite a mining income of $1.5 billion during that time.
In addition to the decline in revenue, the number of BTC mined in August also decreased slightly from 14,725 in July to 13,843. This drop made August the worst revenue period for miners since September 2023, highlighting the challenges faced by miners in the current market.
Market Conditions
The daily confirmed transaction 30-day average also saw a decrease from nearly 631,648 on July 31 to 594,871 by the end of August. Furthermore, the month saw a rise in mining difficulty, reaching an all-time high of 89.47 trillion, up from 86.87 trillion in July.
Despite the dip in revenue and challenging market conditions, there has been a notable increase in the number of Bitcoin whales holding at least 100 BTC. According to Santiment, 283 more wallets now hold over 100 BTC, bringing the total to 16,120 wallets with over 100 BTC, the highest level in nearly a year and a half.
Price Struggles
The increase in whale activity contrasts with recent price struggles faced by bitcoin. Data from CoinGecko shows that the asset declined by 1.5% in the past 24 hours and lost nearly 10% of its value over the last seven days. With fluctuations between $57,383 and $64,066, bitcoin has struggled to maintain its $60,000 support level.
The decline in bitcoin mining revenue and on-chain fees, coupled with a decrease in mined bitcoin and challenges in market conditions, paint a challenging picture for miners. Despite the rise in Bitcoin whales, the overall sentiment remains uncertain as the cryptocurrency faces price struggles and volatility. Miners will need to navigate these challenges carefully to adapt and thrive in the evolving market landscape.
