JPMorgan (JPM) reported on Monday that the Bitcoin network’s hashrate experienced a modest increase in January, while mining difficulty saw an unusual dip.
The report noted that the monthly average hashrate grew by 1%, reaching 785 exahashes per second (EH/s), while mining difficulty decreased by 2%, which is a rare occurrence. At the end of the month, the 7-day moving average for the hashrate stood at 781 EH/s, marking a 2% decline from December’s numbers. Analysts Reginald Smith and Charles Pearce from JPMorgan remarked that the decline in difficulty is a relatively uncommon event, providing a small boost to Bitcoin mining economics.
Despite the temporary decrease in difficulty, Bitcoin’s network difficulty remains 25% higher than before the halving event that took place in April 2024. A separate CoinDesk report revealed that Bitcoin’s 7-day moving average hashrate hit a record high of 833 EH/s.
In terms of mining profitability, JPMorgan estimated that miners earned an average of $57,200 per EH/s in daily block rewards in January, a slight increase of less than 1% compared to December.
The total market capitalization of Bitcoin miners tracked by JPMorgan grew by 5% month-over-month. Notable performers included Cipher Mining (CIFR), which saw a 23% gain, and Riot Platforms (RIOT), which rose by 16%, thanks to developments in high-performance computing (HPC). Conversely, TeraWulf (WULF) underperformed, with its stock dropping 16% during the same period.
