Bitcoin's hash rate has decreased by approximately 4% year-on-year, marking its first contraction in over five years. This decline is attributed to miners reallocating computational resources towards AI infrastructure, driven by the rapid expansion of artificial intelligence and increased demand for data centers. Despite this shift, miners remain bullish on Bitcoin, as evidenced by a negative Bitcoin Miner Position Index (MPI) of -1.2, indicating reduced selling activity and increased accumulation. Major mining firms like Riot Platforms, IREN, Bitfarms, TeraWulf, and Marathon Digital Holdings are diversifying into AI and high-performance computing to hedge against tightening mining margins. Miner reserves have reached approximately 1.8 million BTC, valued at $140 billion, the highest since February 2026. This accumulation suggests miners expect future price strength, while broader market flows show renewed buying interest with $120 million in net Bitcoin purchases and significant institutional inflows.