In recent developments within the cryptocurrency sphere, Bitcoin has witnessed a significant uptick in the number of new addresses, marking a four-month high. This surge is indicative of a renewed interest from retail investors in the digital currency space.
Analyst Ali highlighted this resurgence, noting that the typical “Sell in May and go away” adage is no longer applicable as retail investors re-enter the market, pushing the number of new Bitcoin addresses to 432,026.
Challenges Amidst Miner Pressures
Despite the positive sign of increasing retail participation, not all aspects of the Bitcoin ecosystem are experiencing a bullish phase. According to research from Kaiko, Bitcoin miners are facing continued pressure following the cryptocurrency’s fourth halving event.
While there was a temporary boost in network fees in April due to increased activity from Ordinals—an application that stores non-fungible tokens (NFTs) on Bitcoin’s blockchain—these fees have subsequently diminished. The average transaction fees have settled between $3 and $5, except for a brief spike to $102 in early June.
Source: Kaiko
The reduced transaction fees have coincided with a drop in block rewards, now halved from 6.25 BTC to 3.125 BTC. This reduction has put financial stress on miners, prompting some to liquidate portions of their holdings to sustain operations.
For instance, Marathon Digital was noted to have sold 390 BTC in May to manage its operational costs and treasury. Facing these economic challenges, some mining companies are considering strategic mergers to consolidate resources and enhance operational efficiencies. A notable instance of this trend is Riot Platforms’ recent acquisition of a 14% stake in Bitfarms for $2.45 per share.
Bitcoin’s Price Movement Amidst Market Adjustments
As the crypto mining sector navigates through these turbulent waters, Bitcoin’s price itself has shown signs of recovery, though it remains volatile. Over the past week, the cryptocurrency saw a nearly 3% increase, yet it has struggled to consistently stay above the $63k mark.
As of the latest data, Bitcoin’s price has dipped to $61,881, reflecting a 1.8% decrease in the last 24 hours. This price fluctuation underscores the ongoing uncertainty in the market, influenced by both micro and macroeconomic factors.
