JPMorgan Reports Decline in Bitcoin Mining Earnings for October
JPMorgan highlights that Bitcoin miners face consecutive revenue and profit drops as mining challenges rise.
In October, daily bitcoin mining revenues and gross profits continued to decline for the fourth consecutive month, according to a report from JPMorgan.
- Daily block reward gross profits reached the lowest recorded point.
- Mining difficulty hit an all-time high in October.
The bank estimated that miners earned an average of $41,800 per exahash per second (EH/s) in daily block reward revenue, which is a 1% drop compared to September. The decline in profitability is notable, with the bank reporting a 2% decrease in daily block reward gross profit, marking a recent low point.
However, there was a positive uptick as transaction fees rose to comprise up to 60% of the block reward towards the month's end, offering some relief in hashprice. The Bitcoin network's average hashrate surged to a record 702 EH/s in October, reflecting a substantial increase of 9% from the previous month. Analysts Reginald Smith and Charles Pearce emphasized this trend in their analysis.
