Miner Revenue Squeezed as Fees Plummet to 10-Year Low

Bitcoin miners are facing unprecedented pressure as transaction fees account for just 0.69% of their revenue, hitting a 10-year low. According to data from Glassnode, this is the lowest level since April when it fell to 0.52%. The drop in fee revenue means that miners increasingly rely on block subsidies, which have been squeezed by declining Bitcoin prices and rising electricity costs.

The estimated average cost of producing one Bitcoin has risen to $78,254, almost 23% above the current spot price. This has led to a decline in the network's hash rate, which has dropped by 33% since its peak in October 2025. Analysts warn that miners' shift towards AI computing could affect the network.

Rafael Schultze-Kraft from Glassnode noted that 'Bitcoin was below $400 the last time fee share was this low.'