In the first half of November, the Bitcoin (BTC) Mining economy saw a notable rebound, according to a JPMorgan research report released Monday.
Hashprice, a key profitability metric for miners, has increased 29% since the end of October. This increase is attributed to the Bitcoin price rally, which outpaced the network’s hashrate growth, and the increase in transaction fees as a percentage of block rewards, explained analysts Reginald Smith and Charles Pearce.
Impact of the Bitcoin rally on the markets
The price of Bitcoin, boosted by Donald Trump’s victory in the US presidential election, reached all-time highs after a 30% increase so far this month. This has had a direct impact on the shares of mining companies.
According to the report, the total market capitalization of mining stocks tracked by JPMorgan soared 33%, equivalent to approximately $8 billion, between October 31 and November 15. This growth reflects both Bitcoin’s gains and widespread optimism in the crypto sector following the elections.
A competitive landscape for miners
The network’s hashrate, which measures the total computational capacity dedicated to mining and processing transactions, has increased 2% so far in November, reaching an average of 718 exahashes per second (EH/s). This indicator not only signals greater competition in mining, but also an increase in the difficulty of the process.
The Hashrate rises in tune with the price of Bitcoin. Source: Blockchain.com
Within this panorama, the 14 publicly traded mining companies under JPMorgan’s coverage represent approximately 28% of the global hashrate, a share that remains at record levels.
Strengthening mining profitability and renewed enthusiasm for cryptocurrencies position Bitcoin at a crucial time for the development of its ecosystem, especially with optimism around pro-crypto policies under the incoming Trump administration.
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