Bitcoin Miners’ Profits Cannot Escape Low Levels

JPMorgan (JPM) reported in its research report published yesterday that bitcoin (BTC) mining profitability remains stuck at record lows.

“We estimate that Bitcoin miners earned an average of $43,600 per EH/s in daily block reward revenue in August, the lowest level ever,” analysts Reginald Smith and Charles Pearce wrote in the report.

The average price of the world’s largest cryptocurrency has fallen for three consecutive months, while the network hash rate has risen.

The report noted that the total market value of 14 miners listed in the US decreased by 15 percent on a monthly basis to $20 billion, with only three of the miners outperforming bitcoin during this period.

The bank emphasized that the network hash rate, which is an important indicator of competition in the sector and the difficulty of mining, has increased for the second month in a row. The report stated, “The network hash rate increased by 16 EH/s in August compared to the previous month, reaching an average of 631 EH/s.”

The report noted that in August, transaction fees experienced a short-term increase of up to 120% of the block reward, creating a “gradually positive” environment for miners.

The bank noted that bitcoin’s annual volatility rose to 62% from the 45% recorded in July.