Bitcoin mining revenue has been on a decline for the fourth consecutive month, according to a recent analysis by JPMorgan. The report highlighted that daily mining revenue and gross profit dropped in October, with daily block reward gross profit hitting a recent record low.
The bank noted that mining difficulty reached an all-time high in October, indicating increased competition in the industry. Despite the challenges, there was a positive development towards the end of the month as transaction fees surged to as high as 60% of the block reward, providing some relief for miners.
In terms of hashrate, the report mentioned that the monthly average for the Bitcoin network reached a record high of 702 EH/s in October, following a significant 9% increase from the previous month. The seven-day moving average network hashrate at the end of the month stood at 748 EH/s, marking an 18% increase from September and a 62% rise year-on-year.
Additionally, the total market cap of the 14 publicly listed miners tracked by the bank saw a 14% increase to $23.9 billion. Companies with high-performance computing (HPC) exposure led the growth in market cap.
It’s important to note that despite the challenges faced by miners, the cryptocurrency industry continues to evolve and adapt to changing market conditions. The fluctuations in mining revenue and profitability are part of the natural cycle of the market, and miners are constantly seeking ways to optimize their operations and remain competitive in the industry.
As the cryptocurrency market continues to mature, it is essential for miners to stay informed about the latest trends and developments in order to make strategic decisions that will help them navigate the challenges and capitalize on opportunities in the industry. By staying proactive and adaptable, miners can position themselves for long-term success in the ever-changing landscape of cryptocurrency mining.