Bitcoin just vaulted to a new all-time high, blasting through $111,980 and into price discovery mode. As of Wednesday afternoon, one Bitcoin had reached an all-time high of $112,052. Much of this increase was propelled by an incredible tech stock boom, spearheaded by Nvidia. Despite this lightning fast growth, Bitcoin miners’ volume share has dropped recently, hitting an all-time low of 3.3% this year.

Bitcoin's Record-Breaking Surge

Bitcoin’s price has shot up again, making headlines as it approaches all-time highs, again, up almost 3% today. The increase is a big vote of confidence, driven by renewed expectations of at least some monetary easing. At the time of this writing, Bitcoin is trading just shy of $108,800, reflecting just how bullish the market remains right now.

The old high on Wednesday, led predominantly by tech stocks, pushed the average up to a record high of $112,052. Nvidia was the unstated but pivotal player behind this amazing rally. This correlation underscores the increasing integration of Bitcoin within broader financial markets and its sensitivity to movements in the tech sector. Savvy investors will be watching these trends and market signals as they consider Bitcoin’s potential for future growth.

Declining Miner Activity

During this time, even while Bitcoin’s price is soaring, the Bitcoin Miners’ Volume Share indicator has plummeted. Previously, the indicator was as high as 20%. That would imply that miners accounted for 20% of the entire network’s volume. The decrease in Bitcoin Miners’ Volume Share accelerated recently, representing one of the largest changes to the network landscape to date.

This sharp decrease in miner activity begs the question — what is making these miners stop actively participating? Electricity is likely a big part of this, accounting for 80% of the operational costs of Bitcoin chain validators. Alternatively, mining operational shifts and geographic redistribution might be considerably influential factors as well.

The Shift in Mining Operations

In fact, when China banned Bitcoin mining four years ago, the industry experienced one of its biggest paradigm shifts. Miners rushed to set up operations elsewhere where they were welcomed. Only a couple of years ago, 50% of all Bitcoin mining was concentrated in China. This has significantly displaced Bitcoin mining to the United States.

"Bitcoin is officially now ‘Made in America.'" - Charles Edwards

These decentralized and decentralized mining operations lie at the heart of Bitcoin’s network security. As a result, the U.S. has become an unexpected world leader in the industry. With all that mining power concentrated in one country, there are new concerns over regulatory risks and geopolitical risk.