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Bitcoin Miners Face AI Squeeze As Hash Rate Flattens And Network Enters New Security Phase, Fidelity Says

by Bitcoin News Update
May 28, 2026
in Bitcoin
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Digital asset markets are slogging through a choppy 2026, with prices under pressure even as the underlying plumbing of the system quietly advances — from tokenization on Wall Street to quantum‑resistant upgrades on Bitcoin. 

A new mid‑year update from Fidelity Digital Assets frames the year as one of “structural retooling,” where regulatory progress, infrastructure build‑out, and institutional experimentation are doing more work than headline prices suggest.

Bitcoin is down about 13% year‑to‑date amid liquidation‑driven deleveraging, stubborn inflation and geopolitical shocks that have pushed rate expectations back toward tightening, Fidelity notes. 

Yet the asset has outperformed many traditional benchmarks during recent flare‑ups in global conflict, hinting at renewed demand for liquid, politically neutral assets when stress spikes.

At the same time, demand for crypto exposure through mainstream channels remains resilient, with options on spot BTC exchange‑traded products—launched only in late 2024—now seeing open interest comparable to options settled in native bitcoin, according to the report. 

Tokenization is another quiet growth area, as large financial institutions roll out blockchain‑based products and major exchanges take stakes in digital‑asset platforms, helped by joint SEC–CFTC guidance and draft legislation like the CLARITY Act that aim to formalize a digital‑asset taxonomy.

AI, mining and Bitcoin’s security debate

One of the more novel developments so far this year is the interplay between AI and bitcoin mining capacity. Fidelity noted the 30‑day average hash rate and mining difficulty are each down roughly 8–9% from earlier highs—before a modest rebound—suggesting miners may be redirecting power and infrastructure toward higher‑margin AI data center workloads.

On‑chain, the firm reports that expanding the amount of data allowed in Bitcoin’s OP_RETURN field has not triggered the feared “blockchain bloat,” with block sizes and utilization still tracking within projected ranges. 

Instead, attention has turned to node diversity and long‑term security: Bitcoin Core still accounts for about 77% of nodes versus roughly 17% for Bitcoin Knots, raising what Fidelity calls a non‑zero risk of fragmentation under certain conditions even as work accelerates on proposals like quantum‑resistant Pay‑to‑Merkle‑Root outputs.

Bitcoin vs. gold

Outside crypto, gold has reasserted itself as a preferred macro hedge, surging nearly 30% earlier in the year before settling back to a still solid 3–4% gain year‑to‑date, according to the report. 

Fidelity points to persistently strong central‑bank buying and evidence that gold is overtaking U.S. dollars and Treasuries in some reserve mixes, alongside isolated but symbolically important moves such as Iran accepting BTC for certain payments tied to traffic in the Strait of Hormuz.



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Tags: bitcoinEntersfacefidelityFlattensHashMinersNetworkPhaseRatesecuritysqueeze
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