Catenaa, Friday, June 20,2025- Bitcoin miners are grappling with reduced income despite the cryptocurrency’s price climbing above $100,000, as transaction fees plummet to their lowest level since 2022, industry data shows.
According to Luxor’s Hashrate Index, fees in June have accounted for less than 1% of total block rewards, signaling shrinking revenue for miners beyond the fixed BTC block reward.
Miners earn 3.125 BTC per block, valued at over $327,000 at current prices, plus transaction fees, which decline when fewer users engage the network.
The average Bitcoin transaction fee currently stands at $1.45, remaining below $1.50 for much of this year, only briefly rising during spikes in blockchain activity such as Bitcoin Ordinals transactions.
Reduced network use means miners earn less from fees, tightening profit margins.
The sector has also seen increased selling of mined BTC to sustain operations, with data from CryptoQuant revealing miners offloaded 15,000 BTC on April 7, a $1.12 billion outflow at prices under $75,000. The dip followed tariff-related market pressures linked to President Donald Trump’s trade policies.
Despite the price rally from April lows, mining revenue remains near historic lows since the April 2024 halving event cut rewards from 6.25 to 3.125 BTC per block. Industry experts say survival hinges on efficient hardware and low power costs rather than BTC price alone.
Compass Mining’s CJ Burnett highlighted that lean operations can weather difficult markets, while Sangha Renewables’ Mihir Bhangley stressed that profitability depends on cost structure over price volatility.
