JP Morgan: Bitcoin Mining Company Profitability Hits Low as Cryptocurrency Market Dips
CryptoNewsTerminal Staff16 Sep, 2024
JP Morgan: Bitcoin Mining Company Profitability Hits Low as Cryptocurrency Market Dips
JP Morgan's recent report highlights the declining profitability of bitcoin mining companies due to the drop in bitcoin's price and the increase in network hashrate. The report indicates a 4% increase in network hashrate this month, reaching pre-halving levels. However, hashprice, a measure of miner revenue, has decreased by 2% this month and remains significantly lower than pre-halving levels. With seasonality posing challenges for hashprice, hashrate growth may slow in the near term. This situation underscores the impact of market fluctuations on the profitability of bitcoin mining operations.
