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.
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.
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.