In this ongoing and challenging cryptocurrency market, where top assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) have experienced massive price falls, crypto-related stocks, especially Bitcoin mining companies have outperformed Bitcoin in terms of value gain. On June 15, JPMorgan reported that the combined market capitalization of 14 U.S.-listed Bitcoin mining companies hit an all-time high of $22.8 billion.
US-listed mining companies outperformed Bitcoin
This surge in value is due to continuous developments in the crypto industry. If we look at the performance of all these listed mining companies, in the first two weeks they have outperformed Bitcoin. In the first half of June 2024, Core Scientific (CORZ) experienced a massive 117% price surge, making it the top performer. Meanwhile, Argo Blockchain (ARBK) experienced a modest 7% downside move.
Investor optimism was largely influenced by Core Scientific’s partnership with the artificial intelligence firm CoreWeave, indicating the growing intersection between blockchain technology and other innovative fields.
Moreover, the mining difficulty, which indicates the level of competition in Bitcoin mining, has continued to decrease since the reward halved in April 2024. Analysts Reginald Smith and Charles Pearce highlighted a 7 EH/s (1%) decline in network hashrate since May 2024, reflecting adjustments in industry dynamics.
Interestingly, U.S.-listed miners have been steadily increasing their share of the global network hashrate. Currently, these 14 companies collectively control approximately 23.8% of the network hashrate, marking a nearly 1% gain from the previous month.
Bitcoin price analysis and key levels
JPMorgan’s analysts view this trend positively, analyzing it as a sign that inefficient mining operations have scaled back following the halving event. This shift suggests a development in the industry, wherein more efficient and competitive players are consolidating their positions.
However, during this period (since June 1, 2024), Bitcoin (BTC) has experienced a price drop of nearly 9%. The current BTC chart on a weekly time frame signals a bearish momentum, and there is a possibility that it could fall another 7% to the $61,000 level or more if sentiment doesn’t change.
