Bitcoin Network Hits Record Highs Amid Slowing Growth: Mining Difficulty Drops 2%

According to a report by JPMorgan, as cited by CoinDesk, the growth of Bitcoin’s network computing power slowed significantly in January. The average monthly computing power increased by just 1%, reaching 785 exahashes per second (EH/s), while mining difficulty experienced a rare 2% month-on-month decline. The report highlighted that the 7-day moving average of computing power hit an all-time high of 833 EH/s by the end of January. However, the month-end computing power dropped by 2% compared to December, settling at 781 EH/s.

JPMorgan noted that the decrease in mining difficulty is “mildly positive” for miners, even though the current network difficulty remains 25% higher than it was before the April 2023 halving. Additionally, miners’ average daily block reward income saw a slight 1% increase in January, rising to $57,200 per EH/s. Meanwhile, the total market capitalization of mining companies grew by 5% month-on-month. Among the major players, Cipher Mining (CIFR) and Riot Platforms (RIOT) saw significant gains, rising by 23% and 16%, respectively, while TeraWulf (WULF) experienced a 16% decline.