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

Bitcoin might have fallen about 8.0% final month as a result of macro uncertainty, however community exercise was nonetheless extremely sturdy.

JP Morgan Analyst Expects Hashrate to Sluggish Down

In Might, the every day community hash price, a sign of community well being, climbed to document highs. The index has elevated for 5 consecutive months.

Merely put, the upper the hash price, the safer the community. Nonetheless, JP Morgan analyst Reginald Smith mentioned in a be aware on Friday:

Our sense is that community hashrate development is prone to gradual over the subsequent few months (maybe lagging the rise in BTC worth) because of the problem of financing out there rack area.

When it comes to market capitalization, the mixed whole of 13 US-listed miners tracked by JP Morgan rose 5.0% final month to $6.7 billion.

Elevated mining problem and transaction charges

Mining problem (one other metric that usually fluctuates in tandem with Bitcoin hashrate) additionally rose to all-time highs in Might.

Latest knowledge confirms that cryptocurrency transaction charges additionally elevated final month. JP Morgan’s Smith additionally mentioned in a analysis be aware:

Transaction charges jumped to over 5 BTC per block mined in early Might, which ought to add a small enhance to C2Q23 revenues for the business as an entire.

Nonetheless, in latest weeks, Bitcoin transaction charges have approached a historic common of round 0.5 BTC per block mined. JP Morgan mentioned final week that Bitcoin ought to commerce at $45,000.