A new report from crypto analytics firm Alphractal has revealed a surprising resilience within the Bitcoin mining sector. Despite plunging profitability and historically low network activity, miners are resisting the urge to sell their Bitcoin reserves — a stark contrast to patterns seen in previous market downturns.
Transaction fees on the Bitcoin network have fallen to their lowest point in over a decade, touching levels last seen in 2012. This dramatic drop is largely due to a significant decline in on-chain activity, which has directly reduced fee-based revenues for miners.
This revenue slump has added pressure on miners already grappling with heightened hash rate volatility. Alphractal notes that fluctuations in network hash power are now more extreme than at any point in Bitcoin’s history. Some industrial-scale mining operations have reportedly powered down their ASIC machines to stem losses, as the current conditions offer razor-thin — or even negative — margins.
Despite worsening profitability, miners are holding onto their BTC. Rather than liquidating their reserves to cover operational costs — a typical move during revenue crunches — they appear to be adopting a more strategic stance. Alphractal suggests miners may be redirecting their resources to more profitable chains or simply waiting out the downturn, anticipating better conditions ahead.
This diverges from historical norms. In prior cycles, miners typically sold off substantial amounts of BTC during price surges or when transaction activity spiked. The current hesitancy to sell may indicate that miners believe a broader rebound is on the horizon, or that they are anticipating a future where transaction volume — and fees — will rise again.
With Bitcoin trading above $107,000, miners appear to be playing the long game. Alphractal describes the current market behavior as a period of “quiet recalibration” rather than panic or capitulation. The lack of selling, even amid minimal price momentum and muted blockchain usage, signals a shift in how miners are responding to market cycles.
Whether this patience is rooted in long-term bullishness or simply a lack of better alternatives, one thing is clear: Bitcoin miners are adapting, and doing so without flooding the market with supply — a potentially stabilizing factor as the crypto market eyes its next move.
June 2025, Cryptoniteuae