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Bitcoin miners reported significant profits in
November due to the rally in Bitcoin prices and increased transaction fees.
While still below pre-halving levels, the
cryptocurrency mining sector experienced a notable uptick, with publicly listed
miners seeing their market cap jump 52%, according to JPMorgan. Analysts noted that Bitcoin miners earned
$52,000 daily per exahash (EH/s) in November, reflecting a 24% increase from
October.
Bitcoin’s Recent Gains
This boost came as Bitcoin reached new heights, with
transaction fees spiking around the US presidential election on November 5.
This surge offered miners much-needed hashprice relief, a key measure of mining
profitability, Coindesk reported.
The overall network hashrate, which indicates the
total computational power dedicated to mining, grew 4% month-on-month to 731
EH/s. However, the growth in mining difficulty outpaced this increase, rising
by 7% from October.
Publicly traded Bitcoin miners also reaped the
benefits of November’s rally. The combined market capitalization of 14 miners
tracked by JPMorgan jumped to $36.2 billion, a 52% increase from the previous
month.
These gains highlighted the growing investor
confidence in the sector amid renewed optimism about Bitcoin’s performance. At the time of publication, the top cryptocurrency was trading at $95,654. The figure represents a 1.56% drop and less than 1% increase in the past day and week, respectively.
Annualized Volatility
Bitcoin’s annualized volatility rose to 62% in
November, compared to 42% in October amid heightened market activity. Analysts
attribute this uptick to the cryptocurrency’s strong price movement during the
month.
The report paints an optimistic picture of Bitcoin
mining’s near-term future, though challenges remain. While miners benefited
from a revenue boost in November, profitability is reportedly about 50% below
pre-halving levels.
As Bitcoin continues to evolve, the interplay between
hashrate growth, transaction fees, and market dynamics will remain critical for
miners navigating this volatile landscape.
This article was written by Jared Kirui at www.financemagnates.com.
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