VanEck: What's the current situation with BTC miners shifting to AI and mid-level holders selling off BTC?
Bitcoin has rebounded 12% in January with reduced volatility. Mining activity is declining, with a 2% drop in difficulty and a 6% drop in hashrate, as miners shift focus to AI data centers. Digital asset treasury companies face market cap discounts, leading to potential mergers. Bitcoin ETPs saw $440 million in inflows recently, contrasting with previous outflows. However, on-chain metrics show a decline in network health, with decreased daily revenue and active addresses. The trend indicates miners are shutting down rigs due to economic pressures and seasonal power rationing, while AI demand grows.