October marked a bullish month for many crypto assets and their ecosystems but not for Bitcoin (BTC) miners. Earlier, JPMorgan released a report that provided insight into October’s Bitcoin mining revenue outlook and other metrics. Accordingly, daily Bitcoin mining revenue and gross profit dropped for the fourth consecutive time.
Bitcoin Miner Revenue Outlook
JPMorgan’s estimate shows miners received an average of $41,800 per exahash per second (EH/s) of hashrate in daily block reward revenue. This value is 1% less than that of the previous month. Notably, hashrate is the combined computational power required to mine and process transactions on a Proof-of-Work (PoW) blockchain like Bitcoin.
It is largely a proxy for industry competition and mining difficulty. In addition to the mining revenue dip, general profitability dropped significantly. The daily block reward gross profit dropped 2% in October to the lowest level “on recent record.” Despite the downturn trend, there were still some metrics with values worthy of applause.
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Transaction fees exceeded 60% of the block reward as the month ended. In JPMorgan’s opinion, this provided some relief for hashprice. The hash price measures the mining company’s daily revenue. Also, Bitcoin saw its monthly average hashrate jump to a record high of 702 EH/s in October. It is worth noting that it had previously gained 9% in September.
“The month-end seven-day moving average network hashrate stood higher at 748 EH/s, up 18% from the end of September and up 62% year-on-year,” JPMorgan analysts Reginald Smith and Charles Pearce wrote in the report.
Bitcoin Outlook in November: What to Expect?
Amidst this outlook, Bitcoin hit a major price rebound, reaching a multi-month high of $73,000.
As of October 31, BTC’s price reached as high as $72,398.88 but has now fluctuated. At the time of this writing, BTC’s price traded at $70,064.64, following a 0.61% slump in 24 hours. However, its daily trading volume has increased by 24.75% to $49.73 billion.
While the Bitcoin mining revenue is dropping, chances it will derail the push for ATH remains low.
Infact, Analysts believe that the coin is on the verge of a new ATH. Crypto analyst Michaël van de Poppe pointed out that Bitcoin hit a new ATH in EUR, suggesting a breakout in USD. He also mentioned that holding above $70,000 is crucial for the flagship crypto to maintain bullish momentum. However, a failure to break through the $73,344 resistance could lead to a test of lower support levels.
Looking brighter, Julia Moreno, a Senior Analyst at CryptoQuant, predicted an average price of $84,000 for BTC. His projection is based on on-chain data and the realized price band.
Bitcoin ETF Watch and Rate Cut Impact
The spot Bitcoin ETF market is fueling a potential BTC price rally. The nine-month-old product is currently registering positive trends. On October 31, Bitcoin ETFs saw a tremendous spike in trading volume, marking a milestone in the cryptocurrency market. Notably, their trading volume surged past $4.5 Billion.
It was primarily driven by BlackRock’s $IBIT, which accounted for $3.3 billion. This is the highest volume it had recorded in six months. Fidelity, Grayscale, ARK Invest, Bitwise, VanEck, and the other spot Bitcoin ETF issuers also contributed their quota. As this inflow continues to rise, so is the potential for Bitcoin price to continue growing.
Another catalyst for the Bitcoin price surge is the expected cut in the United States Federal Reserve interest rate this month. The next cut is slated for November 7, which might impact Bitcoin price.
