JPMorgan Reports Positive Trends in Bitcoin Mining Economics
JPMorgan's recent report highlights significant improvements in bitcoin mining profitability and market capitalization in November.
Positive Developments in Bitcoin Mining Economics
According to a new research report from JPMorgan, published on Monday, bitcoin mining economics have seen a notable upswing in early November, with the hashprice climbing nearly 30%. This improvement is attributed to a rise in bitcoin mining profitability.
Key Highlights:
- The total market capitalization of mining companies followed by JPMorgan surged by 33%, amounting to an increase of approximately $8 billion.
- Bitcoin miners listed in the United States now represent about 28% of the global mining network, as reported by JPMorgan.
The analysts from JPMorgan, Reginald Smith and Charles Pearce, noted:
"The hashprice increased 29% since the end of October as the BTC rally outpaced network hashrate growth and transaction fees increased as a percentage of the block reward."
This rise in profitability follows a significant surge in bitcoin's value, which reached record highs earlier this month after Donald Trump's victory in the U.S. presidential elections.
In conclusion, the report paints an optimistic picture for the future of bitcoin mining, supported by a healthy increase in profitability metrics.
