AI Bubble Threatens Bitcoin in 2026, Warns Tether CEO

Paolo Ardoino warns that an AI-driven market bubble could threaten Bitcoin in 2026 due to its correlation with tech stocks, but growing institutional adoption may help buffer against severe downturns.

Paolo Ardoino has warned that the rapid expansion and heavy investment in artificial intelligence infrastructure could create a significant market bubble, posing the greatest risk to Bitcoin in 2026. He explained that Bitcoin remains closely correlated with traditional capital markets, and a downturn in the AI sector—driven by excessive spending on data centers and GPUs—could trigger volatility in tech stocks, which may spill over into Bitcoin’s price. Ardoino noted that while Bitcoin’s fundamentals are strengthening and institutional adoption is rising, these same factors make it more connected to broader financial markets. He pointed out that a shift in sentiment around AI could lead to a stock market correction, indirectly affecting Bitcoin. However, he also believes that the growing involvement of pension funds and governments in Bitcoin could help buffer against severe downturns, making sharp corrections like those seen in previous cycles less likely. Ardoino remains optimistic about the future of tokenization and the integration of real-world assets into blockchain, but cautions that investors should closely monitor developments in the AI sector as they could have significant implications for cryptocurrency markets.