Bitcoin Tops $64,000 as Crypto Miners Pivot to AI Infrastructure

In a diverging digital asset market, Bitcoin (BTC) emerged as the sole major gainer on Tuesday, climbing back above $64,000 while the broader altcoin market faced downward pressure.

Range-Bound Bitcoin and Slipping Altcoins

■Bitcoin rose over 1% on the day, marking a marginal weekly gain to trade above the $64,000 threshold.

■Ether (ETH) eased slightly to just under $1,900, though it managed to retain an almost 1% weekly gain.

■XRP fell over 1% to trade below $1, marking a 2% weekly decline as the weakest performer among major assets.

■Hyperliquid’s HYPE bucked the trend among mid-caps, surging 7.5% over seven days to trade just over $59.

The AI Pivot: Mining Capacity Drops 21%

According to data from Miner Weekly, publicly listed Bitcoin miners have slashed their combined computing power by 21% over three quarters. This significant hash rate reduction is driven by weak mining economics and intense competition for capital and electricity, forcing operators to redeploy capacity toward AI infrastructure. Highlighting this convergence, serial crypto entrepreneur Erik Voorhees’ AI platform, Venice, crossed $100 million in annualized revenue, driving its VVV token up 10% to $13.30.

Macro Winds: Oil Surges and Inflation Fears

Broader markets faced headwinds as geopolitical tensions flared. Brent crude surged over 0.5% to cross $91 a barrel following President Donald Trump's remarks on ending the Iran agreement, coupled with renewed fighting in Lebanon. This energy spike fueled inflation concerns, dragging Asian bonds and global stock futures lower. Meanwhile, in network developments, Zcash (ZEC) is preparing for its Tachyon upgrade, designed to scale shielded payments and improve quantum readiness.

The most critical structural shift in the blockchain ecosystem right now is the migration of raw computing power from mining to AI data centers. The 21% drop in public miner hashrate is a rational response to tight mining margins and the lucrative capital flows within the AI sector. On the technical front, as FxPro's Alex Kuptsikevich points out, sellers remain in control of the medium and long-term trends until Bitcoin decisively breaks out of its $62,000 to $65,000 consolidation range. However, core infrastructure upgrades like Zcash's Tachyon show that technological innovation remains resilient despite short-term market noise.