Bitcoin Network Hashrate and Mining Insights for January
The Bitcoin network’s hashrate, which serves as a key indicator of competition within the mining industry and the associated mining difficulty, experienced a modest uptick in January. According to a research report released on Monday by Wall Street banking giant JPMorgan (JPM), the monthly average hashrate increased by 1%, reaching a total of 785 exahashes per second (EH/s). In contrast, the mining difficulty saw a slight decline of 2% compared to the previous month.
The report also highlighted that the weekly moving average hashrate at the end of the month was recorded at 781 EH/s, marking a 2% decrease from December’s figures. Analysts Reginald Smith and Charles Pearce noted that this situation is relatively uncommon, suggesting it provides a modest tailwind for Bitcoin (BTC) mining economics. Furthermore, they pointed out that the current network difficulty remains a substantial 25% higher than the levels observed before the halving event that took place last April.
Adding to the positive narrative, a report by CoinDesk indicated that Bitcoin’s 7-day moving average hashrate achieved an all-time high of 833 EH/s, reflecting the ongoing growth and resilience of the network.
Mining profitability also saw a slight increase in January. JPMorgan estimated that miners earned an average of $57,200 per EH/s in daily block reward revenue, which represents an increase of less than 1% from December’s averages. This uptick in profitability coincided with a 5% rise in the total market capitalization of the Bitcoin mining companies tracked by the bank.
Among the key players in the industry, Cipher Mining (CIFR) and Riot Platforms (RIOT) outperformed their peers, posting gains of 23% and 16% respectively, following their announcements related to high-performance computing (HPC). Conversely, TeraWulf (WULF) did not fare as well in January, experiencing a 16% drop in its share price.
