Effects of Bitcoin Halving on Miner Revenue: Industry Revenues Hit Lowest Point Since 2023
The latest Bitcoin halving has sent shockwaves through the mining industry, with revenues hitting their lowest point since early 2023. As the profit margins tighten, questions arise about which firms can survive the next halving epoch and how Bitcoin’s market price will be affected.
Data from CryptoQuant shows a steep decline in miner revenue following the halving, with the Puell Multiple dropping significantly. This ratio compares the value of daily BTC issuance to the 365-day moving average, and with the reduction in new BTC issued per block, miners are feeling the squeeze.
CryptoQuant CEO Ki Young Ju highlighted the tough choices miners now face: either capitulate or wait for a rise in Bitcoin’s price. Despite the challenges, miners are holding onto their BTC, with flows to OTC desks and exchanges remaining low.
The launch of Runes, a new protocol standard for minting tokens on Bitcoin, provided a temporary boost to miner revenue on the day of the halving. However, fees have since normalized, and daily revenue has dropped to $28.5 million.
As the mining industry navigates these challenges, the future remains uncertain. Will miners be able to weather the storm, or will we see a shift in the landscape of Bitcoin mining? Only time will tell.
