Compass Mining has published its comprehensive Bitcoin Mining Industry Report for the month of July 2024, which highlights significant operational developments. According to Compass Mining, the month of July witnessed the Bitcoin price closing at $64,619, reflecting a 3.1% increase that brought a much-needed relief to Bitcoin miners. This increase comes after miners had been contending with a 50% reduction in rewards following the recent halving.

However, a recent surge in Japan’s currency led to the unwinding of carry trades and a sell-off in risk assets, including Bitcoin, causing the price to dip below $50,000. This decline was attributed to speculators who had previously borrowed yen at zero interest, converted it into stronger currencies, and made global investments, resulting in a significant devaluation of the yen. Following Japan’s 0.25% interest rate hike, the yen surged nearly 10% against the USD, resulting in a drop of nearly 15% in Bitcoin’s yen-denominated price on Tokyo’s bitFlyer exchange.

Subsequently, with the Bank of Japan raising rates, there has been a reversal in money flows, resulting in a recent strengthening of the Bitcoin price, which has now surpassed the $60,000 mark.

Furthermore, the report introduced the concept of “hashprice,” which represents the expected daily value of 1 TH/s of hashing power and measures a miner’s potential earnings from a given amount of hashrate. The global hash rate has maintained a range between 500 EH/s and 700 EH/s in July, reaching an all-time high on July 23, 2024, climbing significantly above 800 EH/s.

However, the mining difficulty experienced a decline of an average of 3.1%, which did not provide relief for miners in terms of their production. The upcoming mining difficulty adjustment is expected to drop by 5.36%, presenting an opportunity for miners on the global network to mine more Bitcoin.

In addition to the updates on Bitcoin mining, the report also touched on the approval of multiple spot Ethereum exchange-traded funds (ETFs) by the Securities and Exchange Commission. This marks a significant milestone, as these ETFs, based on Ethereum’s spot price, provide institutional investors with a new entry point into cryptocurrency markets beyond Bitcoin.

As the cryptocurrency landscape continues to evolve, it is crucial for industry participants to stay informed about these operational developments and regulatory milestones to navigate and adapt to the dynamic environment. With the increasing global hash rate and upcoming changes in mining difficulty, the Bitcoin mining industry is poised for further changes that will likely impact miners and market dynamics.

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