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

Bitcoin could have misplaced about 8.0% final month on macro uncertainty however the network exercise remained extremely robust.

JPMorgan analyst expects a slowdown in hash rate

In May, the every day network hash rate – a carefully adopted metric that signifies network’s well being climbed to a record high. It was the fifth consecutive month of improve for the stated indicator.

Simply put, bigger the hash rate, the safer is the network. Nonetheless, Reginald Smith – a JPMorgan analyst stated in a be aware on Friday:

Our sense is that network hash rate progress might gradual over the approaching months (presumably lagging BTC worth appreciation) as funding obtainable rack house is difficult to return by.

In phrases of market cap, the 13 U.S. listed miners that JPMorgan tracks famous an mixture improve of 5.0% final month to $6.7 billion.

Mining issue and transaction price additionally elevated

Mining difficulty – one other metric that sometimes strikes in tandem with the Bitcoin hash rate – additionally climbed to a record high in May.

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

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

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