Cheap transfers for Bitcoin users are raising fresh concerns about miner profitability.
Bitcoin (BTC) appears to be struggling to hold on to $88,000 as it saw a 2% decline on Tuesday. Against the backdrop of a gloomy price action, new data suggest that fewer people are currently using the Bitcoin blockchain.
Alphractal founder and CEO Joao Wedson said that “this is not a good sign.”
Red Flags for Miners
Bitcoin’s total transaction fees have dropped to their lowest level since January 2011, according to analysis by Alphractal. The decline is mainly due to the low volume of Bitcoin currently being transferred on the blockchain.
While this situation benefits users by keeping transaction costs very low, it poses challenges for Bitcoin miners, as lower fees reduce their financial incentives. This could force some to sell their BTC holdings to cover costs. Alphractal also said that the Fee-to-Price ratio has stabilized, which means that at current BTC prices, sending transactions on the network remains extremely cheap.
Meanwhile, new on-chain data from CryptoQuant further indicated early signs of renewed selling pressure from miners, particularly on Binance. The miner flow to exchange data shows several positive spikes on December 11, 17, and 19, occurring while Bitcoin was holding near current price levels.
This metric measures the net value of Bitcoin transferred from miners’ wallets to Binance. Positive readings indicate that miners are depositing more BTC than they are withdrawing. Such behavior is often associated with preparations to sell. As this cohort is the primary source of newly issued BTC, its activity can have a significant impact on short-term market movements.
CryptoQuant observed that the last similar surge in miner deposits occurred in mid-November, shortly before Bitcoin fell from above $103,000. While the latest data does not mean that a sharp correction is inevitable, it points to a familiar pattern in which increased miner deposits at high prices can limit upside momentum.
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Previous instances show that periods of strong miner inflows to exchanges have acted as a headwind for further price gains, especially during consolidation phases.
Bigger Downside Still Coming in 2026
On the price side of things, even as most market watchers remain bearish in the mid and long-term, crypto analyst Mr Wall Street said Bitcoin is showing bullish conditions in the short term due to limited downside liquidity. According to the analyst, this lack of selling pressure makes an immediate drop unlikely. He explained that he placed long positions in the $80,000 to $84,000 range, and expects a relief bounce.
Bitcoin later retested support near $84,000, which aligns with the 100-week moving average, triggering his long entry at $84,550. Mr Wall Street stated that he plans to close the position in the $98,000 to $104,000 range, where liquidity and a fair value gap are present.
Despite this short-term outlook, the analyst went on to say that he remains bearish overall and expects BTC to move lower later. He revised his downside target to the $64,000-$70,000 range, which he expects to be reached in late Q1 or early Q2 2026.
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