- Bitcoin network activity rose for the fifth month in a row.
- Mining difficulty and transaction fees also rose in May.
- The world’s largest cryptocurrency lost about 8.0% last month.
Bitcoin may have lost around 8.0% last month due to the overall uncertainty, but network activity remains incredibly strong.
A JPMorgan analyst expects a slowdown in the hash rate
In May, the network’s daily hash rate — a closely watched metric indicating network health — rose to a record high. This is the fifth consecutive month in which the aforementioned index has risen.
Simply put, the higher the hash rate, the more secure the network. However, Reginald Smith – JPMorgan analyst said in a note on Friday:
Our sense is that network hash rate growth may slow over the coming months (possibly delaying BTC price estimation) as funding for available shelf space is hard to come by.
In terms of market capitalization, the 13 US-listed miners tracked by JPMorgan saw an overall increase of 5.0% last month to $6.7 billion.
Mining difficulty and transaction fees have also increased
Mining difficulty – another metric that usually moves in tandem with bitcoin’s hash rate – also rose to a record high in May.
Recent data confirmed that cryptocurrency transaction fees have increased in the past month as well. JPMorgan’s Smith also said in his research note:
Transaction fees rose to more than 5 bitcoins per block mined in early May, which should send C2Q23’s modest earnings higher for the overall industry.
In recent weeks though, Bitcoin transaction fees have returned near their historical average of around 0.5 BTC per block mined. Last week, JPMorgan said that Bitcoin should be trading at $45,000.