JPMorgan Analysts Published a New Report About Bitcoin: “For the Fourth Month in a Row…”

Bitcoin mining revenue and profits continued to decline for the fourth consecutive month in October, according to a recently published research report by JPMorgan.

report, diary Bitcoin (BTC) It showed that mining revenue and gross profit experienced a decline due to increased competition and network difficulty.

JPMorgan estimates that Bitcoin miners earn an average of $41,800 per exahash per second (EH/s) in daily block reward revenue, representing a 1% decrease from September. Measuring the total computing power used to mine and transact on the Bitcoin network, hashrate serves as an indicator of both competition and mining difficulty. The report noted that as hashrate increases, the mining process becomes more competitive, affecting profitability.

The bank also noted that gross profit from daily block rewards fell 2% in October, reaching the lowest level seen in “recent records.”

Despite the decline in profitability, the report noted a significant increase in transaction fees towards the end of October. At one point, transaction fees accounted for 60% of the block reward, providing miners with temporary relief from hashprice, a measure of daily revenue for mining companies.

The report also detailed the significant increase in the average hashrate value of the Bitcoin network, which reached a record high of 702 EH/s in October. This represents a 9% increase compared to September and indicates intensifying competition among miners. Analysts Reginald Smith and Charles Pearce noted that the seven-day moving average network hashrate at the end of the month was 748 EH/s, representing a significant increase of 18% compared to the end of September and 62% compared to the previous year.

In contrast to the decline in revenue and profitability, the total market value of the 14 publicly traded Bitcoin mining companies tracked by JPMorgan rose 14% in October to $23.9 billion. This increase was led by companies expanding into the high-performance computing (HPC) space, suggesting that diversification beyond traditional mining can provide resilience in volatile market conditions.

*This is not investment advice.