Bitcoin miners are holding onto their crypto holdings despite a drop in revenue to levels last seen in early 2023. The recent halving reduced fixed block rewards from 6.25 BTC to 3.125 BTC, impacting miners’ revenue significantly.

According to CryptoQuant CEO Ki Young Ju, miners now have two options: capitulate or wait for a rise in Bitcoin’s price, which is currently trading at around $63,000. However, there are currently no signs of capitulation among miners.

Following the halving, analysts at Coinbase Research noted an increase in variable transaction fees, resulting in an all-time high of $81 million spent on transaction fees in one day. This, combined with the BTC rally during Q1, could support the continued growth of network hash rate for some time, making it profitable for miners to continue participating in BTC mining at current price levels.

Bitcoin underwent its fourth halving on Apr. 20, reducing the block reward by half. This event is significant as it affects the supply of new Bitcoins entering circulation. Historically, Bitcoin’s price has experienced significant movements around halving events, with some investors anticipating a price increase due to the reduction in supply.

Despite the recent halving, Bitcoin reached a new all-time high even before the event took place, leading some to argue that the landscape has evolved compared to previous cycles. Hut 8 CEO forecasts a decline in Bitcoin mining bankruptcies amid a scale shift in the industry.

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