- Bitcoin network miner revenue fell between May and June.
- As BTC traded in a tight range, buying momentum waned.
Bitcoin [BTC] Miner revenue has declined month-on-month, although the network has seen a significant increase in on-chain transaction volume, data shows The block revealed.
Read Bitcoins [BTC] Price prediction 2023-24
Because it is a proof-of-work network, Bitcoin miners’ revenue comes from two main sources: inflation premiums (block subsidies) and transaction fees. When miners successfully add a new block, they are rewarded with a certain number of newly minted bitcoins.
Besides the block subsidy, miners also receive transaction fees paid by users who initiate BTC transactions. Bitcoin’s block subsidy fell 6% between May and June, according to data from TheBlock.
During the same period, miners’ revenue from the transaction fees paid to use the blockchain also fell by 15% on the Bitcoin network. In the month-to-date, miners have earned $173 million in inflation premium revenue, while their transaction fee revenue has reached $177 million over the past seven days.
Source: TheBlock
While miner revenue fell between May and June, BTC on-chain transaction volume increased. According to data from TheBlock, this figure increased by 24% during this period.
Interestingly, the total value of transactions made on the BTC network increased between May and June, however, the number of BTC transactions dropped by 25%.
BTC remains firmly positioned
After briefly breaking through $31,000 on June 23, BTC price has been range-bound ever since, keeping the psychological $30,000 price region as support. At press time, the number one cryptocurrency is trading at $30,212.56 and has seen a 50% drop in trading volume over the past 24 hours, according to data CoinMarketCap.
An assessment of BTC price action 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 the long-term moving average, suggesting a possible shift towards bearish momentum.
This event is often interpreted by traders and investors as a sell signal. Thus, this indicated a possible downtrend in the asset price.
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Additionally, key momentum indicators are showing a downtrend at press time, and have been since the beginning of the month. This showed that while the price of BTC has remained in a tight range, buying momentum has waned.
Despite all of this, buyers continued to have solid control of the BTC market. A look at the asset’s Directional Movement Index (DMI) showed that the strength of the buyer (green) was 25.48 and above that of the seller (red) was 14.50.
Source: BTC/USD, TradingView
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