In the final three months of 2024, Bitcoin miners underwent substantial advancement thanks in part to the premier cryptocurrency’s first-time transcendence of the $100,000 mark. Notably, this crypto milestone was spurred by heightened institutional adoption and a potent wave of optimism which followed Donald Trump’s pro-digital currency presidential election triumph. This observation emerged from an analysis done by H.C. Wainwright, shedding new light on the robust health of the Bitcoin market.
Bitcoin’s Q4 2024 Performance
The digital currency had an exceptional run in the fourth quarter of 2024, with its value hitting an all-time peak of $106,144 in mid-December. Although Bitcoin ended the quarter at approximately $93,400, this represented a 48% surge from Q3, a lucrative situation for miners in the wake of record-breaking ETF inflows.
ETFs with a focus on Bitcoin attracted a significant $16.7 billion in the fourth quarter, dwarfing the $4.3 billion of the previous quarter by nearly fourfold. This trend catapulted the average value of Bitcoin to a robust figure of $83,432 for the same period, marking a 36.7% increment from the earlier quarter. Given such decisive performance, it’s predicted that miners can anticipate experiencing superior revenue growth and broadening profit margins in their imminent earnings reports.
Expansion of Bitcoin Mining
The mining sector witnessed remarkable development during this period, with public miners supplementing their operations by a convincing 46 exahashes per second. As a result, their total operational capacity expanded to 235.8 EH/s. The international network hash rate for Q4 stood at an average of 738 EH/s, showcasing an upward swing of 17.3% from the third quarter. It appears that, as of early 2025, the rising trend of the hash rate is holding steady, touching 833 EH/s by February 2nd.
High Bitcoin values, in tandem with rampant mining activity, propelled aggregate BTC production up by 16.4% quarter over quarter, arriving at 11,366 BTC. Concurrently, transaction fees exploded by 59.4% to reach 1,553 BTC. This crucial growth pattern drove up total miners’ revenue by 41%, amounting to a staggering $3.7 billion. Public miners witnessed their combined market cap prop up by 21% to $28 billion, with AI-linked miners exceeding their competition.
Outlook for 2025
So far, the first quarter of 2025 has commenced with aplomb, with Bitcoin averaging a stunning $100,000 and ETF inflows hitting $5.7 billion. Nonetheless, analysts advise a degree of caution with regard to potential turbulence brought on by persisting U.S. trade disputes with Canada, Mexico, and China. Despite the localised short-term volatility, analysts maintain a bullish stance, suggesting that any slight softness observed in Bitcoin or miner stocks should be perceived as potential investment opportunities.
For the forward-looking investor or crypto enthusiast, understanding these trends and deciphering what they mean is key to making informed decisions. From the Bitcoin surge to the increasing trend in mining, every aspect points towards an exciting future for crypto. However, always remember that like any other investment vehicle, cryptocurrencies also come with their fair share of risk.
