According to a recent JPMorgan research report, the Bitcoin mining economy showed significant improvement in the first half of November.
Increase in Mining Profitability
The 'hashprice,' a key indicator of mining profitability, has increased by 29% since late October as Bitcoin’s rise outpaced growth in network hashrate. Analysts noted that rising transaction fees have further increased profitability.
Impact on Market and Companies
The total market value of mining companies tracked by JPMorgan increased by 33%, gaining about $8 billion between October 31 and November 15. This growth was attributed to the price increase of Bitcoin and renewed optimism in the cryptocurrency market following Donald Trump’s presidential election victory.
Role of Hashrate and US Companies' Dominance
The Bitcoin network’s hashrate increased by 2% on a monthly basis, averaging 718 exahashes per second (EH/s). This measures the computing power used to verify and mine transactions. Despite the rising hashrate, US-listed mining companies continue to hold a dominant position, accounting for 28% of the global network.
Analysts point out that the Bitcoin mining economy is strengthening thanks to rising cryptoasset prices and higher transaction fees. However, the dominance of US companies remains a significant factor in this field.
