Transactions on bitcoin network drop to 2-month low as miners struggle to break even

The number of transactions on the bitcoin network has fallen to a two-month low as miners struggle to break even amid a market sell-off.

The number of daily transactions on the bitcoin network hit just over 116,000 on June 10, according to data from BitInfoCharts, from a peak of more than 120,000 in mid-May.

The drop comes as the bitcoin price has dropped more than 60% since March. The cryptocurrency is currently trading at $5,100 on Bitstamp, down from the all-time high of $19,800 reached in December 2017.

Bitcoin miners depend on transaction fees for their operation and profitability. Miners earn 12.5 new bitcoins for every block mined (about $58 million at current prices).

But as the price of bitcoin has dropped, transaction fees have halved since the end of 2018, according to BitInfoCharts. As a result, some miners are struggling to cover costs and are forced to close or move their operations elsewhere with cheaper or free electricity.

Bitcoin mining equipment consumes a large amount of energy equivalent to about 30 terawatt hours (TWh) per year worldwide and many countries are struggling with power outages because they cannot