Bitcoin News: US Bitcoin Miners Transition to AI and HPC as Fee Revenue Becomes Uncertain

As the uncertainty of Bitcoin transaction fee revenues grows, miners in the US are adapting their strategies.

US Bitcoin Miners Shift Toward AI and HPC Due to Fee Revenue Uncertainty

According to a recent VanEck report, Bitcoin miners in the US are increasingly moving towards artificial intelligence (AI) and high-performance computing (HPC) as a diversification strategy, given the uncertainty of transaction fee revenues. The report notes that while network congestion can temporarily boost fees, long-term on-chain revenue growth is uncertain due to the rise of off-chain solutions. As block rewards halve every four years, miners must adapt to maintain revenue levels, highlighting the importance of pivoting to AI and HPC.

Bitcoin Faces New Turbulence with Signs of Strain on Its Network

Bitcoin is showing signs of strain, with dwindling activity and declining transaction volume. The cryptocurrency, which has recently gained only 1.68% and remains below $100k, is struggling to regain its peak. Fewer active addresses, now at 1.1 million, indicate decreasing investor interest and potential price stagnation or decline. The Network Value to Transactions (NVT) ratio has surged to 978, suggesting speculative trading over substantial activity. Daily transactions have dropped from 402,000 to 350,000, hinting at reduced market demand and stability risks. Analysts are watching closely, as future demand and activity will determine Bitcoin’s market trajectory.

Disparities in Bitcoin Futures Trading Profiles Across Exchanges

According to CoinGlass data, there are significant disparities in Bitcoin futures trading profiles across major centralized exchanges. Open interest stands at $16.72 billion for CME, $11.01 billion for Binance, $8.40 billion for Bybit, $7.38 billion for Gate.io, and a notably lower $118.83 million for Coinbase. However, when looking at 24-hour trading volume, the rankings shift, with Binance leading with $14.10 billion, followed by CME at $11.47 billion, Bybit at $6.63 billion, Coinbase at $8.27 billion, and Gate.io at $2.66 billion. These disparities illustrate different trader profiles and strategic approaches to futures trading.

U.S. spot Bitcoin ETFs see three consecutive days of net outflows

U.S. spot Bitcoin ETFs have experienced three consecutive days of net outflows, losing nearly $500 million over this period leading up to Feb. 20. The outflows started with $61.4 million on Feb. 18, followed by $71.07 million on Feb. 19, and surged to $364.93 million on Feb. 20. BlackRock’s IBIT, ARK Invest’s ARKB, and Fidelity’s FBTC were among the funds that experienced the largest outflows.

G8 Gold Reserves Reallocation Could Boost Bitcoin by 5%

As Bitcoin moves beyond its speculative origins, it is gaining recognition as a store of value, often referred to as “digital gold.” Analysts are exploring how national reserves, specifically gold, could be reallocated to Bitcoin, further propelling the asset’s growth. Matthew Sigel, the head of digital asset research at VanEck, has explored the potential consequences of G8 countries reallocating a small percentage of their gold holdings to Bitcoin. This analysis has garnered attention as more countries consider adding Bitcoin to their reserve assets.