- Bitcoin community exercise elevated for the fifth straight month.
- Mining problem and transaction charges additionally elevated in Could.
- The world’s largest cryptocurrency fell about 8.0% final month.
Bitcoin could have fallen round 8.0% final month attributable to macro uncertainty, however community exercise was nonetheless extremely sturdy.
JP Morgan Analyst Expects Hashrate to Gradual Down
In Could, the each day community hash fee, a sign of community well being, climbed to report highs. The index has elevated for 5 consecutive months.
Merely put, the upper the hash fee, the safer the community. Nonetheless, JP Morgan analyst Reginald Smith mentioned in a be aware on Friday:
Our sense is that community hashrate development is prone to sluggish over the subsequent few months (maybe lagging the rise in BTC worth) as a result of problem of financing obtainable rack house.
By way of market capitalization, the mixed complete of 13 U.S.-listed miners tracked by JP Morgan rose 5.0% final month to $6.7 billion.
Elevated mining problem and transaction charges
Mining problem (one other metric that often fluctuates in tandem with Bitcoin hashrate) additionally rose to a report excessive in Could.
Latest knowledge confirms that cryptocurrency transaction charges additionally elevated final month. JP Morgan’s Smith additionally mentioned in a analysis be aware:
Transaction charges will leap above 5 BTC per block mined in early Could, which ought to give a small enhance to C2Q23 revenues for the business as an entire.
Nonetheless, in latest weeks, Bitcoin transaction charges have approached a historic common of round 0.5 BTC per block mined. JP Morgan mentioned final week that Bitcoin ought to commerce at $45,000.