Bitcoin miners may see a profitability shrink this month following a related drawdown recorded in September.
Top investment bank Jefferies says October could bring more negative sentiment to Bitcoin BTC $83 210 24h volatility: 3.7% Market cap: $1.65 T Vol. 24h: $36.62 B mining profitability. This projection came after September when we saw a remarkable drop in the same metric compared to the previous month.
In Jefferies’ report, analysts Jonathan Petersen and Joe Dickstein noted that the average price of the top cryptocurrency remained unchanged all through this period while its hashrate registered a 1.7% increase.
Marathon Digital Leads with 705 Bitcoin Mined
Jefferies highlighted that Bitcoin’s average daily revenue per exahash saw a 2.6% dip from the value recorded in August. Based on these metrics and the current outlook of the ecosystem, Petersen and Dickstein stated that “October is currently poised to be a harder month with BTC prices only up around 5%, while the network hashrate up +11% more than offsets that growth.”
The report also provided insights into how mining companies performed based on their regions. Mining companies listed in North America mined more BTC in September than the previous month. It also comprised 22.2% of the total network, a slight upsurge from the 19.9% recorded in August. This improved action is partly attributed to better uptime for firms served by lower temperatures.
Marathon Digital Holdings (NASDAQ: MARA) recorded the largest number of BTC mined of all the mining companies. The Fred Thiel-led firm mined 705 BTC. Marathon added more than 5,000 Bitcoin units in August to bring its total Bitcoin holdings to 26,200 BTC. It is worth noting that the company acquired these Bitcoin units in August rather than mine it.
The acquisition made the mining giant one of the largest public holders of Bitcoin. In terms of mining, CleanSpark (CLSK) followed Marathon in September with 493 Bitcoin mined. By the end of September, Marathon’s installed hashrate ranked the highest in the sector.
According to the Jefferies report, the value stood at 36.9 exahashes per second (EH/s). The closest after Marathon is Riot Platforms (RIOT) with 28.2 (EH/s). In conclusion, the investment bank acknowledged the upcoming United States presidential election, citing that the “bitcoin election” is coming to its conclusion.
Irrespective of who becomes the next US president, Petersen and Dickstein believe that “we could see incrementally favorable policies toward the industry”.
Current Bitcoin Market Outlook
Meanwhile, Bitcoin price rebounded earlier today, climbing as high as $64,834.44. This corresponds with a 3.52% increase in the last 24 hours. The surge in the flagship cryptocurrency’s price triggered a 2% pump in the broader crypto market capitalization. This metric hovered around $2.25 trillion at the time of this writing. The market outlook has caused short traders to liquidate approximately $200 million.
From a technical point-of-view, Bitcoin price needs to convert the resistance range between $64,500 and $66,500 to a support level to ensure bullish momentum ahead. Even veteran trader Peter Brandt acknowledged that BTC price must consistently close above the July high of about $69,700 to invalidate potential bearish pressure towards $48,000.
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