Bitcoin (BTC) mining profitability rose in December, says JP Morgan

Bitcoin (btc) Miner revenues and total profits rose for the second straight month in December, according to JPMorgan Chase (JBM).

The largest US bank says in a report that Bitcoin mining profitability has now reached its highest level since April 2024 when the last halving occurred. Reduce available supply Bitcoin by 50%. Mining profitability is increasing with… Marching in the largest gathering in the world Cryptocurrency In terms of market capitalization it still outperforms network hashrate growth, notes JP Morgan.

Analysts at the bank estimate that Bitcoin miners earned an average of $57,100 in reward revenue during December, 10% more than in November. However, total profits for Bitcoin miners are still 43% to 52% below pre-halving levels, JPMorgan Chase noted in its latest report on… encryption Mining sector.

Mining becomes more difficult

The network hash rate increased by 6% in December. Hash rate refers to the total combined computational power used to mine and process Bitcoin transactions on the blockchain. Mining difficulty rose 7% from the previous month and is now 27% higher than it was before the halving event last spring.

Additionally, JPMorgan says the market capitalization of the 14 publicly listed bitcoin mining companies it tracks fell 23% to $28 billion in December. Bitcoin rose about 120% over the past 12 months and is currently trading at just under $99,000 per digital token.

Is BTC a buy?

Most Wall Street firms don’t offer ratings or price targets for Bitcoin, so we’ll take a look at the cryptocurrency. Performance for three months instead of. As we can see in the chart below, the price of Bitcoin has risen by 65% ​​in the past 12 weeks, which is a strong showing.