Bitcoin is experiencing a surge in new addresses, reaching a four-month high and signaling a renewed interest from retail investors in the cryptocurrency space. Analyst Ali pointed out that the traditional belief of “Sell in May and go away” no longer holds true as retail investors re-enter the market, resulting in 432,026 new Bitcoin addresses.
However, not all aspects of the Bitcoin ecosystem are experiencing a bullish phase. Bitcoin miners are facing ongoing pressures following the fourth halving event. While network fees briefly increased in April due to increased activity from Ordinals, these fees have since decreased. The average transaction fees have settled between $3 and $5, with a brief spike to $102 in early June.
The decrease in transaction fees coincides with a reduction in block rewards, halving from 6.25 BTC to 3.125 BTC. This has put financial strain on miners, leading some to sell portions of their holdings to sustain operations. For example, Marathon Digital sold 390 BTC in May to manage costs. In light of these challenges, mining companies are considering strategic mergers to consolidate resources and improve operational efficiencies. Riot Platforms recently acquired a 14% stake in Bitfarms for $2.45 per share.
While the crypto mining sector faces turbulence, Bitcoin’s price has shown signs of recovery but remains volatile. The cryptocurrency saw a nearly 3% increase over the past week, but struggles to maintain stability above the $63k mark. Currently, Bitcoin’s price stands at $61,881, reflecting a 1.8% decrease in the last 24 hours. This price fluctuation highlights the ongoing uncertainty in the market, influenced by various economic factors.