Exciting times are here again! Bitcoin has surged past the $70,000 mark, keeping the ‘Uptober’ meme alive. Microsoft is considering adding BTC to its holdings, and ETF inflows are on a sharp rise. Meanwhile, the network hashrate is hitting record highs and BRICS nations focus on strengthening their presence in the global computing market through high-performance data centers. Difficulty is also on the brink of surpassing the 100T level for the first time. However, hashprice remains just under $50/PH/day, leaving miners still waiting for stronger returns. In this week’s mining economics rundown, we’ll cover the following topics:
Bitcoin on Track to Reinforce the ‘Uptober’ Phenomenon
Trump Better Candidate for Bitcoin
Microsoft Considers Buying BTC
ETF Flows Rising Sharply Again
Network Hashrate Marks New ATH at 740 EH/s
Expected Hashrate Growth in BRICS Countries
Difficulty Nearing 100T
Hashprice Back Below $50/PH/day
Premium Members Only:
Bitdeer Opens Preorders for the SEALMINER A2
Hydro-Cooled SEALMINER A2Hyd
Bitdeer’s Roadmap and Efficiency Milestones
ASIC Development for Proprietary Hashrate Expansion and Third-Party Sales
Bitcoin on Track to Reinforce the ‘Uptober’ Phenomenon
Bitcoin has risen 18% this month, fueling the ongoing ‘Uptober’ narrative. Although prices dipped sharply on October 25, largely due to reports from the Wall Street Journal that the U.S. Attorney’s Office may be investigating Tether over possible misuse of its platform for illegal activities by third parties, Tether quickly denied the allegations. The company emphasized the absence of any official confirmation from authorities and criticized the article’s reliance on unverified sources.
Last week, investor confidence faced further setbacks amid heightened Middle East tensions, dampening risk appetite. This week, however, shows a sharp contrast: BTC has crossed the $70,000 mark, now just 3.5% from new all-time highs. Adding to the bullish outlook is a “golden cross” signal, with the 50-day SMA moving above the 200-day SMA.
Trump Better Candidate for Bitcoin
The upcoming U.S. presidential election is anticipated to significantly influence Bitcoin’s trajectory. A poll conducted by Michael Saylor, CEO of MicroStrategy, indicates that a substantial majority believe former President Donald Trump is the preferable candidate for Bitcoin’s interests.
Trump’s pro-crypto stance includes proposals such as establishing a national Bitcoin reserve and replacing SEC Chair Gary Gensler, which have contributed to positive market sentiment among Bitcoin investors. Conversely, Vice President Kamala Harris has also shown support for cryptocurrencies, emphasizing their potential in future economic plans. Analysts suggest that a Trump victory could propel Bitcoin to unprecedented levels, potentially exceeding $80,000 to $90,000. However, the market also recognizes that a Harris victory might introduce different regulatory dynamics, possibly leading to increased scrutiny and potential price volatility.
Microsoft Considers Buying BTC
Following the U.S. election, Bitcoin enthusiasts are turning their attention to another crucial vote. Microsoft, one of the world’s largest tech companies with a market cap exceeding $3 trillion, is reportedly considering a move to invest in Bitcoin. According to a recent SEC filing, Microsoft has listed “assessment in investing in Bitcoin” as a shareholder voting item for its December 2024 annual meeting.
If shareholders approve, Microsoft’s potential investment could be a historic milestone, signaling a substantial shift in institutional adoption of Bitcoin. With Microsoft’s influence in the tech and financial sectors, this decision could drive other major corporations to consider similar investments, potentially impacting Bitcoin’s price and adoption rates significantly.
ETF Flows Rising Sharply Again
Over the past two weeks, Bitcoin ETFs saw robust net inflows, totaling $4.1 billion, with October marking the highest demand level in six months. BlackRock’s iShares Bitcoin Trust (IBIT) has led this surge, reaching a new milestone with its Bitcoin holdings now exceeding 400,000 BTC. The hedge fund’s Bitcoin holdings, valued at approximately $26.98 billion, amount to 403,725 BTC in total.
This significant accumulation reflects BlackRock’s continued confidence in Bitcoin as a strategic asset, following its recent purchase of an additional 34,085 BTC over the past two weeks, valued at roughly $2.3 billion.
While Bitcoin ETFs have expanded access for institutional investors, a recent Binance report highlights that retail investors are still the primary force behind them, accounting for 80% of spot BTC ETF holdings. According to Bloomberg, Bitcoin ETFs have dominated the ETF market in 2024, capturing the top four spots for inflows among all ETFs launched this year. BlackRock’s IBIT fund leads the way, with over $23 billion in inflows year-to-date.
Spot Bitcoin ETFs now hold approximately 938,700 BTC, and they are steadily approaching the 1 million BTC milestone within just 10 months of launch. This rapid accumulation underscores the high demand and adoption potential for Bitcoin among a diverse investor base.
Network Hashrate Marks New ATH at 740 EH/s
Bitcoin’s network hashrate reached a new all-time high of 740 EH/s on October 24, marking an impressive increase of over 100 EH/s since the start of the month. This momentum builds on substantial growth over the year: Bitcoin started 2024 at 511 EH/s and now stands at all-time high levels, a 44.8% rise year-to-date. If this trend continues, the network hashrate is projected to close the year over 800 EH/s.
Looking ahead, if this growth rate carries forward into 2025, we may see Bitcoin’s hashrate break the milestone of one zettahash (ZH/s), or 1,000 EH/s, within the year—a historic achievement for the network’s security and mining capacity.
Expected Hashrate Growth in BRICS Countries
Russia’s largest data center operator, BitRiver, has joined forces with the Russian Direct Investment Fund to develop mining and AI computing facilities across BRICS nations. The companies unveiled their plans at the BRICS Business Forum in Moscow. This partnership seeks to boost Russia’s presence in the global computing market by building high-performance data centers designed for cryptocurrency mining and artificial intelligence workloads. BRICS, an economic alliance of Brazil, Russia, India, China, and South Africa, represents over 40% of the global population and a quarter of global GDP. In 2024, the alliance expanded to include Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE.
Difficulty Nearing 100T
On October 22, Bitcoin’s mining difficulty saw a 3.94% upward adjustment, pushing the year-to-date increase to 32.9%. The current difficulty now sits just 4.5% shy of the significant 100T threshold. Midway through the current difficulty epoch, projections indicate a potential downward adjustment of between 4.8% and 6.9% for November 4.
If network hashrate remains steady or increases slightly, this could result in difficulty surpassing the 100T milestone in the following adjustment cycle—a noteworthy development, underscoring the network’s robust growth and resilience.
Hashprice Back Below $50/PH/day
A bullish price rally, combined with elevated transaction fees, recently pushed hashprice above $50/PH/day. However, after two weeks of higher transaction fees, a drop has brought hashprice down to $47/PH/day. Although this is still 24% above its record low of $38/PH/day, hashprice will need a boost to maintain the upward trend that began in September.
If transaction fees remain stable, BTC would need to reach approximately $75,000 for hashprice to climb back to $50/PH/day at the current difficulty level. This underscores the impact of both Bitcoin’s price and network activity on miner revenue.
The following content is exclusively for our Premium Members:
Bitdeer Opens Preorders for the SEALMINER A2
Hydro-Cooled SEALMINER A2Hyd
Bitdeer’s Roadmap and Efficiency Milestones
ASIC Development for Proprietary Hashrate Expansion and Third-Party Sales
Looking for reliable hosting? Digital Mining Solutions is here to assist. Through our network of trusted partners, we’ll help you find the ideal hosting solution tailored to your needs—whether for a single machine or over 100, and whether you prefer air, immersion, or hydro cooling. With options worldwide, we’re ready to meet your requirements. Contact us for more details!
