- Bitcoin community exercise soared for the fifth month in a row.
- Mining difficulties and transaction charges additionally elevated in Might.
- The world’s largest cryptocurrency misplaced round 8.0% final month.
Bitcoin could have misplaced round 8.0% final month attributable to macro uncertainty, however community exercise has remained extremely robust.
JPMorgan analyst expects hash charge slowdown
In Might, the each day community hash charge – a intently tracked metric that signifies community well being is at an all-time excessive. That is the fifth consecutive month of improve of this indicator.
Merely put, the upper the hash charge, the safer the community. Nonetheless, Reginald Smith – an analyst at JPMorgan mentioned in a word on Friday:
Our sense is that community hash charge development could gradual within the coming months (maybe lagging BTC worth appreciation) as funding for out there rack house is tough to come back by.
By way of market capitalization, the 13 U.S.-listed miners tracked by JPMorgan famous an total improve of 5.0% final month to $6.7 billion.
Mining difficulties and transaction charges have additionally elevated
Mining issue — one other metric that sometimes strikes in tandem with the Bitcoin hash charge — additionally hit an all-time excessive in Might.
Current information confirmed that crypto transaction charges additionally elevated final month. JPMorgan’s Smith additionally mentioned in his analysis word:
Transaction charges spiked to over 5 Bitcoin per block mined in early Might, which ought to result in a modest uptick in Q2Q23 earnings for the trade as an entire.
In latest weeks, nevertheless, Bitcoin transaction charges have returned near their historic common of round 0.5 BTC per block mined. Final week, JPMorgan mentioned that Bitcoin ought to commerce at $45,000.
