Bitcoin (BTC) price continues its downward trend, with a noticeable decline in sentiment surrounding the market leader since dropping below the $65,000 level.
Miners in the BTC mining process have a positive outlook as transaction fees become a more significant part of their revenues. The decrease in Bitcoin supply due to halving and the increased number of transactions since the beginning of the year contribute to this increase in revenues. As a result of recent developments, miners are benefiting more from transaction fees.
However, the decline in Bitcoin network activity may pose future problems for miners. Data from Santiment reveals a significant decrease in daily active addresses conducting transactions on the Bitcoin network over the past few months. If this decline continues, miners’ earnings from the process could decrease. Additionally, the NFT volumes dominating the Bitcoin network have also visibly declined, with Bitcoin losing its top spot in NFT sales to Ethereum and falling to third place, surpassed by Polygon.
The declining interest in the Bitcoin ecosystem has led to a drop in miner revenues. Daily miner revenues have seen a noticeable decline from $50 million to $30 million in recent weeks. If this decline persists, miners may need to sell BTC to maintain profitability, potentially creating selling pressure that could further drive down prices.
As of now, BTC is trading at $64,358, showing no significant price movement in the last 24 hours.
Please note that the information in this article is not investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.