Bitcoin Mining Revenue Jumped 24% in November as Price Approached $100K

Bitcoin miners reported significant profits in
November due to the rally in prices and increased transaction fees. While still below pre-halving levels, the cryptocurrency mining sector experienced a notable uptick, with publicly listed miners’ market caps jumping substantially, according to JPMorgan.

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. Analysts noted that Bitcoin miners earned
$52,000 daily per exahash (EH/s) in November, reflecting a 24% increase from
October.

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 benefited from November’s rally. The combined market capitalization of 14 miners
tracked by JPMorgan reportedly 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. Last month, BTC rose to an all-time price high of $99k.

Annualized Volatility

Bitcoin’s annualized volatility rose to 62% in
November, compared to 42% in October amid heightened market activity. Analysts
attribute this increase to the cryptocurrency’s strong price movement during the
month.

The report highlights 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.

Most recently, Bitcoin miner MARA Holdings warned that
the United States must stay ahead in Bitcoin holdings and mining operations.
The company mentioned that this is a critical national security imperative due to
growing global competition.

The country reportedly holds an estimated 200,000
Bitcoin ahead of China’s 190,000 BTC holdings. Compared to gold, the US has
8,133 metric tonnes versus China’s 2,264 tonnes. Elsewhere, HIVE Digital Technologies posted a
significant expansion of its BTC mining capabilities, reportedly ordering 5,000
new miners.

This article was written by Jared Kirui at www.financemagnates.com.
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