Jefferies Predicts Decline in Bitcoin Mining Profit

Top investment bank Jefferies has predicted that the profitability of Bitcoin mining in October will decline based on data from September.

Leading investment bank According to Jefferies, the profitability of Bitcoin mining may experience an increase in negative sentiment in October. This projection was made following the significant decline in the same metric from the previous month in September.

The average price of the top cryptocurrency remained unaltered throughout this period, while its hashrate experienced a 1.7% increase, according to analysts Jonathan Petersen and Joe Dickstein in Jefferies’ report.

Marathon Digital is the leader with 705 Bitcoin mined

Jefferies emphasized that the average daily revenue per exahash of Bitcoin experienced a 2.6% decrease from the value recorded in August. Petersen and Dickstein predicted that October would be a challenging month, as the network hashrate increased by +11%, while BTC prices only increased by approximately 5%, based on these metrics and the current ecosystem outlook.

The report also offered a comprehensive analysis of mining companies’ performance in their respective regions. In September, mining companies listed in North America mined more Bitcoin (BTC) than they did in the previous month. It also accounted for 22.2% of the total network, a slight increase from the 19.9% recorded in August. This enhanced performance is partially due to the increased uptime of firms served by lower temperatures.

Marathon Digital Holdings (NASDAQ: MARA) was the mining company that mined the most Bitcoin (BTC). The company, led by Fred Thiel, mined 705 BTC. Marathon increased its total Bitcoin holdings to 26,200 BTC in August by purchasing over 5,000 Bitcoin units. It is essential to mention that the company acquired these Bitcoin units in August rather than mining them.

The mining giant became one of the largest public holders of Bitcoin due to the acquisition. CleanSpark (CLSK) followed Marathon in September regarding mining, mining 493 Bitcoin. Marathon’s installed hashrate was the highest in the sector by the conclusion of September.

Per the Jefferies report, the value was 36.9 exahashes per second (EH/s). After Marathon, Riot Platforms (RIOT) is the closest with 28.2 (EH/s). In summary, the investment bank recognized the impending United States presidential election, asserting that the “Bitcoin election” is nearing its conclusion.

Petersen and Dickstein think that “we could see incrementally favorable policies toward the industry” regardless of the individual who serves as the next president of the United States.

Present Bitcoin Market Outlook

In the interim, the Bitcoin price experienced a rebound earlier today, reaching a high of $64,834.44. This is consistent with a 3.52% increase in the past 24 hours. The broader crypto market capitalization experienced a 2% increase due to the flagship cryptocurrency’s price surge. This metric was approximately $2.25 trillion at the time of this writing. Short traders have liquidated roughly $200 million due to the market outlook.

To guarantee bullish momentum in the future, Bitcoin price must convert the resistance range between $64,500 and $66,500 into a support level from a technical perspective. BTC’s price must consistently close above the July high of approximately $69,700 to negate potential bearish pressure toward $48,000, as even veteran trader Peter Brandt acknowledged.