Bitcoin Hashrate Soars to 1.13 ZH/s as Miner Profits Slide
Bitcoin hashrate hit a record 1.13 ZH/s in October, up 5% month-on-month. Gains were driven by rising miner participation in North America, Kazakhstan and the Middle East.
Network security strengthened but block difficulty jumped 3% MoM and now sits 80% above pre-halving levels. This led mining profitability to fall for a third straight month, with daily revenue per EH/s down 7% to $48,000 and hashprice off nearly 12% amid a weaker BTC price.
The spike in Bitcoin hashrate coincided with rising energy costs, especially at off-grid sites, and power curtailments in Europe and the US, further squeezing margins. Analysts expect hashrate growth to moderate in November, with the next difficulty adjustment offering relief to smaller miners.
Meanwhile, the combined market cap of 14 US-listed mining firms jumped 25% to $70bn, driven by high-performance computing expansions and pivots into AI. Cipher Mining led with a 48% share gain, while Cango lagged with a 5% decline.
Bearish
The surge in Bitcoin hashrate and rising block difficulty increases operational pressure on miners, leading to reduced mining profitability and higher energy costs. In the short term, squeezed margins may prompt miners to liquidate holdings, increasing sell pressure on BTC. Although network security improves and long-term fundamentals remain strong, the challenging cost environment and profit squeeze suggest a bearish bias for Bitcoin’s price trajectory.
In the long term, sustained high difficulty could force less efficient miners out, potentially reducing selling pressure over time. However, near-term sentiment is likely to remain cautious given ongoing profit headwinds and supply concerns, reinforcing a bearish outlook.