- Miners’ earnings on the Bitcoin network fell between May and June.
- As BTC traded in a narrow range, the buying momentum withered.
Bitcoin [BTC] miner revenues fell on a monthly basis despite the network witnessing a significant increase in on-chain transaction volume, data from The block revealed.
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Being a proof-of-work network, Bitcoin miners’ revenue comes from two primary sources: inflation rewards (block subsidies) and transaction fees. When miners successfully add a new block, they are rewarded with a certain number of newly minted Bitcoins.
In addition to the block subsidy, miners also earn transaction fees, which are paid by users who initiate BTC transactions. According to information from TheBlock, Bitcoin’s block subsidy fell 6% between May and June.
During the same period, miners’ revenue on the Bitcoin network from transaction fees paid to use the blockchain also fell by 15%. In the current month, miners have accumulated $173 million in inflation rewards revenue, while their transaction fee revenue has reached $177 million in the past seven days.
Source: The Block
While miners’ earnings fell between May and June, BTC on-chain transaction volume increased. According to data from TheBlock, this is up 24% over that period.
Interestingly, while the total value of transactions on the BTC network rose between May and June, the number of BTC transactions fell by 25%.
BTC remains tightly positioned
After briefly crossing the $31,000 price level on June 23, BTC’s price has since traded within a narrow range, holding the $30,000 psychological price region as support. At the time of writing, the number one cryptocurrency changed hands for $30,212.56, registering a 50% drop in trading volume over the past 24 hours, according to data from CoinMarketCap.
An assessment of BTC’s price movements on a daily chart revealed that a new bear cycle was underway. On July 6, the short-term moving average of BTC’s MACD indicator crossed below the long-term moving average, signaling a possible shift to bearish momentum.
This occurrence is often interpreted by traders and investors as a sell signal. Thus, it indicated a possible downward trend in the price of an asset.
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Moreso, the main momentum indicators were trending downwards at the time of going to press and have been since the beginning of the month. It showed that while the price of BTC remains in a narrow price range, the buying momentum has dropped.
Despite all this, the buyers continued to firmly control the BTC market. A look at the asset’s Directional Movement Index (DMI) showed the strength of the buyers (green) at 25.48, resting above the sellers (red) at 14.50.
Source: BTC/USD, TradingView