According to the Bitcoin on-chain data website, the 7-day moving average of Bitcoin mining has surpassed the 700 EH/s mark, reaching a new all-time high. Since the Bitcoin halving event in April, the hash rate has increased by over 13%. The hash rate also highlights a 6% growth in the past 7 days. The price of Bitcoin hash rate has reached a 2-month high, surpassing $50 per second, and is currently slightly above $47 per second at the time of writing. The surge is attributed to the increase in Bitcoin transaction fees and coin prices.
Due to the surge in the current Bitcoin hash rate, the cryptocurrency market expects a difficulty adjustment in Bitcoin mining. The Bitcoin difficulty adjusts every 2016 blocks, with the next adjustment scheduled for October 23rd. The expected adjustment is projected to exceed 4%.
However, the leading cryptocurrency’s price has dropped by approximately 1.1% today, falling below $67,000 at the time of writing. On the other hand, data from BitInfoCharts shows a steady increase in Bitcoin’s hash rate since 2021.
Publicly listed U.S. miners contribute to the growth of Bitcoin hash rate
New: The United States.
According to JPMorgan, miners now contribute 29% of the network’s hash rate.
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— Simply Bitcoin (@SimplyBitcoinTV)
October 16, 2024
A recent report from JPMorgan shows that publicly listed Bitcoin miners in the United States contribute 28.9% of the current Bitcoin network hash rate. In the first half of this month, the stock prices of U.S. miners in the Bitcoin industry have also been surging.
JPMorgan’s research also indicates an increase in the percentage recorded by Bitcoin mining companies based in the United States, significantly enhancing the country’s dominant position in Bitcoin hash rate. Previously, China had the largest dominance in Bitcoin mining.
This year, U.S. Bitcoin mining companies still have encouraging data. In September, data shows that U.S. Bitcoin mining pools accounted for approximately 40% of the Bitcoin network’s mining power. However, Chinese companies still hold as much as 55% of the Bitcoin mining power. The decline of China’s dominance occurred after the country banned all cryptocurrency exchanges and companies.
Wall Street’s interest in Bitcoin mining stocks increases
Ahead of the November U.S. presidential election, institutional investors are showing growing interest in Bitcoin mining stocks. Some analysts speculate that the newfound interest is related to the perceived safety of holding BTC mining stocks compared to Bitcoin itself.
Other information indicates that institutional investors are betting on the energy development of Bitcoin mining companies. A new policy requires Bitcoin mining companies to generate electricity.
Morgan Stanley’s Head of Global Research encourages Chief Information Officers of Wall Street companies to consider investing in Bitcoin mining. Matthew Sigel, Director of Digital Asset Research at VanEck, confirmed on October 14th in a post that further details of the mining companies’ new energy policy were revealed. Sigel also revealed that Bitcoin mining companies have a growing interest in developing technologies, including machine learning and artificial intelligence.
Twitter user Dark Horseman predicts a bullish outlook for BTC due to the increased interest. The user stated that several institutional investors, including Fidelity, Metaplanet, and Samara Asset Group, are accumulating top-tier cryptocurrencies.
