Bitcoin mining saw reduced profitability in July compared to June, as reported by Jefferies.
Despite a stable hashrate, the value of Bitcoin fell by over 6%, impacting miners’ earnings.
US-based mining firms, however, increased their production share. They were responsible for 21.1% of Bitcoin mined in July, up from 20.7% in June. This growth is attributed to these companies rapidly expanding their mining capacities, which outpaced the rise in network hashrate.
Jefferies adjusted its price forecast for Marathon Digital (MARA) down to $17 from $22, maintaining a hold rating. Following this, Marathon’s stock fell by 0.7% to around $15 in premarket trading.
Looking forward, August may pose additional difficulties for miners. Bitcoin’s price has dropped 5% this month, and with a rising network hashrate, miners might face intensified competition and lower profits.
Marathon Digital led production in July with 692 Bitcoins, a 17% increase from the previous month, and maintains the largest hashrate in the industry. Meanwhile, JPMorgan’s report noted a record-high share of global hashrate among US-listed miners, highlighting their growing role in the sector.
The competition in Bitcoin (BTC) mining has escalated recently, with China taking the lead over the United States.
Alphractal, a cryptocurrency analysis firm, has voiced concerns about Bitcoin’s current market trajectory, suggesting it may be on the verge of entering a bear market phase.
Recent blockchain data reveals that a segment of Bitcoin investors has started selling off assets to lock in profits following a recent price surge.
CryptoCon confidently predicted an imminent bull market for Bitcoin, downplaying concerns of a recession or prolonged bear market.