Bitcoin Miners' Revenue Plunges to New Low as Fees Dry Up
Bitcoin miners are struggling to make ends meet as transaction fees account for just 0.69% of their revenue, a new 10-year low according to data from Glassnode. This is a stark decline from previous years, with fees making up less than 1% of miner revenue for almost a year. The drop in fee revenue has forced miners to rely more heavily on the fixed block subsidy, currently 3.125 BTC, which has seen its value decrease due to Bitcoin's nearly 50% price drop since October 2025.
The estimated average cost of producing one Bitcoin has risen to $78,254, almost 23% above the current spot price, according to Checkonchain. This squeeze on profit margins has led to a decline in mining activity, with Bitcoin's network hash rate dropping by 33% since October 2025.
Analysts warn that miners' shift towards more lucrative AI computing could affect the network. 'This dynamic has been reinforced as Bitcoin has underperformed AI related assets & the rate of change in demand for compute,' independent analyst William Clemente noted.