Bitcoin (BTC) Important Signals: Miner activity has dropped to its lowest level since 2022, and the dominance of the United States has exceeded 75%.

On-chain data shows that Bitcoin miners' activity on the network is declining, with their volume share dropping to the lowest level in nearly two years. This trend aligns with a significant geographical shift in mining power, as the United States now accounts for the vast majority of global Bitcoin mining.

According to blockchain analytics company Sentora, miner-related transactions currently account for only 3.3% of the total Bitcoin transaction volume, a significant decline from last year when miner contributions sometimes exceeded 20%. The current level is similar to the data when the market bottomed out at the end of 2022, indicating that miner-driven activity is generally slowing down.

(Source: IntoTheBlock)

Historically, the increase in miner volume has been related to an increase in sell-offs, as miners often transfer cryptocurrencies to fund operations or realize profits. The current slump may indicate a reduction in sell-off pressure, but its long-term market impact remains unclear.

At the same time, another report from the Cambridge Centre for Alternative Finance highlights the rapid rise of the United States as a Bitcoin mining hub. In just four years, the U.S. has surged from a small portion of the global hash rate to a dominant position—currently accounting for 75% of all reported mining activities. Previously, China had completely banned mining in 2021, leading to a mass exodus of miners.

The study also confirmed that the average electricity cost for miners remains around $45 per megawatt-hour, validating the assumptions analysts have long used to model Bitcoin production costs. Electricity costs account for the largest share of miners' expenses (up to 80%), making it a key factor in determining profitability.

Some analysts believe that production costs are a key indicator for determining the potential entry points for long-term Bitcoin investors. With the verification of cost inputs and changes in miner behavior patterns, new models may emerge, reshaping the market's future response to mining dynamics.

The decrease in miner activity and the dominance of the United States indicate that the infrastructure of Bitcoin has become more centralized and possibly more stable, but this also raises questions about decentralization and the future impact of regulation.