Bitcoin miners reported significant profits in November due to the rally in Bitcoin prices and increased transaction fees.

While still below pre-halving levels, the cryptocurrency mining sector experienced a notable uptick, with publicly listed miners seeing their market cap jump 52%, according to JPMorgan. Analysts noted that Bitcoin miners earned $52,000 daily per exahash (EH/s) in November, reflecting a 24% increase from October.

Bitcoin’s Recent Gains

This boost came as Bitcoin reached new heights, with transaction fees spiking around the US presidential election on November 5. This surge offered miners much-needed hashprice relief, a key measure of mining profitability, Coindesk reported.

The overall network hashrate, which indicates the total computational power dedicated to mining, grew 4% month-on-month to 731 EH/s. However, the growth in mining difficulty outpaced this increase, rising by 7% from October.

Publicly traded Bitcoin miners also reaped the benefits of November’s rally. The combined market capitalization of 14 miners tracked by JPMorgan jumped to $36.2 billion, a 52% increase from the previous month. These gains highlighted the growing investor confidence in the sector amid renewed optimism about Bitcoin's performance.

Annualized Volatility

Bitcoin’s annualized volatility rose to 62% in November, compared to 42% in October amid heightened market activity. Analysts attribute this uptick to the cryptocurrency's strong price movement during the month.

The report paints an optimistic picture of Bitcoin mining's near-term future, though challenges remain. While miners benefited from a revenue boost in November, profitability is reportedly about 50% below pre-halving levels.

As Bitcoin continues to evolve, the interplay between hashrate growth, transaction fees, and market dynamics will remain critical for miners navigating this volatile landscape.