In March 2024, the mining trade noticed sturdy development, fueled by cryptocurrency costs hovering to file ranges, which in flip boosted mining profitability, in keeping with a report by JPMorgan.
The evaluation comes at a vital time because the trade anticipates the Bitcoin halving occasion scheduled for April 16, 2024, which is predicted to impression miners’ rewards and total profitability.
Bitcoin’s worth surged to a mean of practically $67,600 in March, marking the very best degree on file, and concluded the month with a seven-day rolling common worth round $69,900. This worth improve represents a 25% soar from the earlier month, with annualized volatility leaping to 65% in March from 42% in February.
The community’s common each day hashrate, a measure of the computational energy used for mining and transaction processing, reached a brand new peak of 600 EH/s (exahash per second) in March. The determine displays a 4% improve from February and an 80% year-over-year development. This improve in hashrate signifies not solely a rising competitors amongst miners but additionally the trade’s resilience and optimism, the report notes.
Regardless of the optimistic tendencies, the upcoming Bitcoin halving occasion, which can cut back the block reward from 6.25 to three.125 bitcoins, casts uncertainty over future mining profitability. JPMorgan’s report means that the halving may result in a decline in profitability in April until offset by a robust rally in Bitcoin’s worth or a dramatic lower within the community hashrate.
The typical each day block reward income per exahash for miners was estimated at $100,400 in March, the very best since August 2022, representing a 33% sequential improve. This spike in profitability was attributed to the Bitcoin worth appreciation outpacing the expansion in community hashrate.
The report additionally touched on the efficiency of U.S.-listed Bitcoin mining firms, noting that the mixture market cap of 14 tracked miners elevated by 3% month-over-month to $20 billion. This determine represents 42% of the four-year income alternative, in keeping with JPMorgan’s calculations.
Among the many listed firms, Cipher Mining Inc (NASDAQ:) emerged as the most effective performer with a 74% improve, whereas Bitfarms Ltd (NASDAQ:) fell by 22%, marking it because the month’s least favorable inventory.
