The real ‘supercycle’ isn’t crypto, it’s AI infrastructure: Analyst

💡 DMK Insight

Bitcoin miners are pivoting to AI infrastructure, and here’s why that matters: As AI data center spending surges, it’s pulling resources away from crypto, which could dampen the anticipated supercycle for Bitcoin. This shift signals a broader trend where miners are adapting to market demands, potentially leading to a decrease in Bitcoin’s hash rate and, consequently, its price stability. Traders should keep an eye on how this transition impacts mining profitability and Bitcoin’s supply dynamics. If miners are investing heavily in AI, it could mean less Bitcoin hitting the market, but it also raises questions about the sustainability of mining operations in the long run. On the flip side, this could create opportunities in AI-related stocks or ETFs as they gain traction. Monitoring the performance of major AI companies could provide insights into how this trend evolves. Watch for Bitcoin’s price action around key support levels; if it breaks below recent lows, it could signal a more significant downturn. The next few weeks will be crucial as we see how these investments play out in both the crypto and AI markets.