Despite an 8.0% drop in Bitcoin's value in May, the network's activity remained strong. The daily network hash rate, which is a key indicator of network health, continued to rise for the fifth consecutive month and reached a record high. JPMorgan analyst Reginald Smith noted that funding for rack space could slow down the hash rate growth, which may lag behind Bitcoin's price appreciation. The 13 U.S. listed miners tracked by JPMorgan experienced a 5.0% increase in market cap last month, reaching $6.7 billion. The mining difficulty also reached a new record high, and transaction fees spiked in early May, which could improve second quarter earnings for the mining industry. However, transaction fees have since returned to the historic average, and JPMorgan analysts believe that Bitcoin should be trading at $45,000.
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