Bitcoin has hit its lowest price in two weeks, with miners facing tough times due to reduced earnings. In August, Bitcoin miners saw their monthly revenue drop to the lowest point since January. This decline was largely due to a decrease in transaction volume on the Bitcoin network and reduced rewards following the recent halving event.Â
Miners Struggle with Falling RevenueÂ
August was a challenging month for Bitcoin miners. The drop in user activity on the network led to lower transaction fees and, combined with the April halving event, significantly cut their earnings. The halving, which occurs roughly every four years, reduced the reward for adding a new block to the blockchain from 6.25 BTC to 3.125 BTC.Â
Miners earn revenue through two main sources: block rewards and transaction fees. Block rewards are new BTC given to miners for validating transactions and adding a block to the blockchain. Transaction fees are paid by users to have their transactions processed. With fewer users on the network, transaction fees have also decreased sharply.Â
Sharp Decline in User Activity and FeesÂ
Data from Artemis shows that the number of unique addresses making at least one transaction on the blockchain in August was 421,220, down by 10%. As a result, total transaction fees recorded fell by 26%. Over the month, miners earned $827 million, which is an 11% drop from July’s $927 million. For comparison, in January, miner revenue was over $1.9 billion, showing a significant decline over eight months.Â
According to Bitbo, miners produced 13,843 BTC in August, valued at slightly over $800 million at current prices, marking a 6% drop from the 14,725 BTC mined in July.Â
Bitcoin Price Forecast: Further Declines PossibleÂ
Bitcoin is currently trading at $57,808, marking its lowest price in two weeks. The cryptocurrency recently fell below the support level of a descending triangle pattern, which has been in place since August 26. This pattern suggests that if Bitcoin fails to retest and reclaim the support level, it could fall further, potentially reaching $54,847.Â
However, if Bitcoin successfully retests the support level and breaks above it, it might rally toward $61,388.Â
