Bitcoin Miners' Revenue Squeezed by Record-Low Fees

Bitcoin miners are facing unprecedented financial pressure as transaction fees account for just 0.69% of their revenue, according to data from Glassnode.

This is a 10-year low, with fees not seen at this level since April and even dipping below 1% in recent months.

Miners have had to increasingly rely on block subsidies, which account for the majority of their income. The block subsidy, currently set at 3.125 BTC per block, is now more crucial than ever due to the significant drop in Bitcoin's value since its October 2025 all-time high.

The estimated average production cost of producing one Bitcoin has risen to $78,254, almost 23% above the current spot price, making it even harder for miners to stay profitable.

As a result, some major players have shifted their focus towards AI computing, with analysts warning that this could affect the network's hash rate and overall security.