Bitcoin community hash charge hit a document excessive in Might

• Bitcoin community exercise climbed for the fifth month straight.
• Mining problem and transaction price additionally climbed in Might.
• The world’s largest cryptocurrency misplaced about 8.0% final month.

Bitcoin might have misplaced about 8.0% final month on macro uncertainty however the community exercise remained extremely sturdy.

JPMorgan analyst expects a slowdown in hash charge

In Might, the day by day community hash charge – a intently adopted metric that signifies community’s well being climbed to a document excessive. It was the fifth consecutive month of improve for the mentioned indicator.

Merely put, bigger the hash charge, the safer is the community. Nonetheless, Reginald Smith – a JPMorgan analyst mentioned in a be aware on Friday:

Our sense is that community hash charge progress might sluggish over the approaching months (probably lagging BTC worth appreciation) as funding obtainable rack area is difficult to come back by.

When it comes to market cap, the 13 U.S. listed miners that JPMorgan tracks famous an combination improve of 5.0% final month to $6.7 billion.

Mining problem and transaction price additionally elevated

Mining problem – one other metric that sometimes strikes in tandem with the Bitcoin hash charge – additionally climbed to a document excessive in Might.

Latest information confirmed the crypto transaction price to have elevated final month as properly. JPMorgan’s Smith additionally mentioned in his analysis be aware:

Transaction charges spiked to over 5 Bitcoin per block mined in early Might, which ought to drive modest C2Q23 earnings upside for the business at massive.

In current weeks, although, Bitcoin transaction charges have returned near its historic common of about 0.5 BTC per block mined. Final week, JPMorgan mentioned Bitcoin needs to be buying and selling at $45,000.