Bitcoin miners are celebrating a notable rise in their daily earnings for the second month in a row, marking a rebound as profits reach the highest point since April. A recent report from JPMorgan highlights this trend, indicating that Bitcoin’s price rally has significantly outpaced the increases in the network’s hashrate, leading to higher profitability for miners.
How Much Have Mining Revenues Grown?
According to JPMorgan’s analysis, miners generated an average of $57,100 per exahash in daily block rewards last month, representing a 10% rise from November. Nonetheless, the report points out that current daily revenues still lag 43% behind pre-halving figures, and gross profits are 52% lower than those levels.
What Does the Hashrate Growth Indicate?
The hashrate, which measures the network’s total computing power, climbed by 6% in December, achieving an average of 779 EH/s. The report anticipates a 54% growth in hashrate for 2024, a decline from the 103% increase recorded in 2023. Additionally, mining difficulty rose by 7% compared to the previous month, surpassing pre-halving levels by 27%.
This recent development underscores several important points regarding the Bitcoin mining landscape:
- Daily revenues have improved but remain significantly below pre-halving levels.
- Hashrate growth continues, indicating increased miner competition and operational challenges.
- Market capitalization for publicly traded Bitcoin miners has decreased, contrasting with Bitcoin’s substantial price rise.
Continued advancements in mining technology and market dynamics are critical for the sustainability of mining operations. Stakeholders must remain vigilant to navigate the ongoing changes in both cryptocurrency prices and the network structure.
