- Bitcoin miners’ income has fallen to its lowest level in the last year.
- This is due to the recent decrease in network activity.
For Bitcoins [BTC] Mining position index [MPI]The leading cryptocurrency is currently in its longest period of reducing selling pressure from miners following a halving event, pseudonymous CryptoQuant analyst Papi found in a new report.
BTC’s MPI measures the relationship between the coin’s total miner outflow in US dollars and its one-year moving average of total miner outflow, also valued in dollars.
When it rises, it indicates that miners are selling more of their holdings. On the contrary, when it decreases, it suggests that they are holding on to their assets or accumulating more.
According to CryptoQuant data, BTC’s MPI was -0.23 at the time of writing. After hitting a year-to-date (YTD) high of 9.43 on January 8, the metric has since declined by more than 100%.
Papi noted in the report that in addition to the IPM drop, BTC’s Puell Multiple has also plummeted, causing miners’ income to fall to its lowest level in a year.
BTC’s Puell Multiple tracks miners’ profitability by measuring the daily issuance of new coins (block rewards) relative to its 365-day moving average.
When the metric value is high, it is interpreted to mean that miners are generating revenue relative to the historical average.
On the contrary, when the metric decreases, miners’ income is low compared to the historical average.
At the time of writing, BTC’s Puell Multiple was 0.69. It sank to a yearly low of 0.67 on May 1. According to CryptoQuant data, this metric last reached the 0.6 region in February 2023.
Miners “pay” the price
Following the Bitcoin halving event, there was an increase in average transaction fees on the network due to an increase in activity around Runes.
However, as the hype around the protocol begins to die down, transaction counts on the network have plummeted, impacting network fees.
Rune “engraving” on the Bitcoin network raised its average transaction fee (assessed on a seven-day moving average) to a high of $40 on April 24, according to The Block data panel.
However, as network activity normalized, network rates tended to drop. As of May 5, network users paid an average transaction fee of $6, representing an 85% drop from the April 24 high.
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Due to this decrease, the percentage of miners’ income derived from network fees decreased. According to messari According to data from April 20, miners obtained 74% of their income from network fees.
However, this has been reduced due to the drop in network activity. On May 5, only 22% of miners’ revenue came from transaction fees on the network.
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This is an automatic translation of our English version.
