Main points
- Bitcoin ($BTC) Miners Experienced Profitability increased by 29% November 2024.
- $BTC computing power A slight increase of 2% November
- Market value of mining companies rises 33% this month.
The profitability of $BTC miners increased significantly in the first two weeks of November 2024, Driven by 29% rise in $BTC hash priceAccording to J.P. Morgan.
Let’s break down the key drivers of this growth.
$BTC Hash Price Hits New High
Braiins data shows that $BTC’s hash price has continued to rise since 2018. Earlier this month, it reached $0.059 per terahash unit. This is a significant jump compared to the low of $0.043 per terahash recorded on November 5.
Hash price growth is driven by BTC Surges to a new all-time high of $98,000.
Hash prices take into account the fixed block subsidy ($3.125 BTC after the April 2024 halving) and transaction fees, which have also grown due to protocols like Runes and Ordinals built on top of the Bitcoin network.
Trump backs $BTC Bitcoin Mining
The US presidential election contributed significantly to the increase in BTC hash price.
Throughout his campaign, Trump expresses strong support for BTC and broader crypto marketfostering optimism in the sector and pushing cryptocurrency prices higher.
In June, Trump held a meeting with executives from USD Bitcoin mining company at his Mar-a-Lago residence in Florida.
After the meeting, he expressed “All remaining BTC USD will be mined in the United States,” stressing that this will help the country achieve energy dominance.
Additionally, Trump claims that BTC mining can be used as The “last line of defense” against the implementation of central bank digital currency (CBDC) in the United States.
He also promised to establish a “Presidential Advisory Council on Bitcoin and Cryptocurrency” to develop clear regulatory guidelines.
Although these statements do not directly affect hashprice, They boost optimism among USD Bitcoin minersthey expect the regulatory environment to be more favorable in the future.
Slowing growth in computing power supports rising computing power
Another factor contributing to the increase in hash prices is the slowdown in hash rate growth, which represents the total computing power of the Bitcoin network.
According to JPMorgan, hashrate increased by only 2% in November. During the first two weeks of this month, The average computing power is 718 EH/s (exahash per second).
However, this growth has lagged behind the surge in BTC prices, Reduce competition among miners and increase profit margins.
As of November 11, the price of $BTC exceeded hashrate growth and continues to accelerate, Bring higher income to miners.
Mining company shares soar
Surge in hash price, Trump’s pro-crypto statement, and rise in USD BTC price prompt Many investors allocate resources to $BTC mining companies.
This influx of investment Increase the cumulative market value of U.S. mining companies by 33%. or $8B, from October 31st to November 15th.
Trawolf ($WULF) shares climbed from $5.98 to $8.82 during that period, while MARA Holdings ($Mara) increased from $15.50 to $25.23.
Currently accounts for 28% of global computing powerSince then, American mining companies have continued to expand their influence on the Bitcoin network.
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