Tether CEO Warns AI Bubble Could Be Bitcoin’s Biggest Risk in 2026

TLDR

• Tether CEO warns AI bubble risks Bitcoin’s price, as AI infrastructure investments may create instability in 2026.
• Ardoino sees Bitcoin’s vulnerability to AI sector downturns, predicting market volatility could impact its value.
• Institutional adoption of Bitcoin offers stability, but Ardoino cautions against excessive control harming decentralization.
• Ardoino criticizes Europe’s crypto regulations, warning MiCA could stifle innovation and delay adoption in 2026.

Tether CEO Paolo Ardoino has raised concerns about the potential risk posed by the growing AI infrastructure bubble to Bitcoin in 2026. During an appearance on the Bitcoin Capital podcast, Ardoino discussed how Bitcoin remains closely tied to broader capital markets. He warned that the AI boom, driven by massive investments in GPUs and data centers, might create instability. This could ultimately spill over into Bitcoin’s price if the AI sector faces a downturn.

AI Infrastructure Investment and Market Vulnerability

Ardoino expressed concern over the vast investments in AI infrastructure, including GPUs and energy resources. He believes this rapid expansion could fuel an unsustainable “AI bubble,” particularly as companies ramp up their spending. “That is the so-called AI bubble,” Ardoino said, emphasizing how these companies are trying to build massive infrastructure with enormous energy consumption. If AI sentiment turns negative in 2026, he predicts it could trigger market volatility that might affect Bitcoin’s price.

The increasing demand for AI infrastructure, especially in data centers and energy, has led to heavy capital outflows. Ardoino pointed out that a collapse or slowdown in AI could have broader implications for the stock market, which in turn, would influence Bitcoin’s value. Since Bitcoin is still closely correlated with capital markets, it is vulnerable to shocks from sectors like AI, which rely heavily on rapid capital deployment.

Institutional Adoption May Shield Bitcoin from Major Declines

Despite his concerns about the AI bubble, Ardoino remains optimistic about Bitcoin’s future, particularly with growing institutional adoption. He highlighted that governments and pension funds have started investing in Bitcoin, which provides stability. 

Bitcoin has entered the institutional era, with ETFs, funds, governments, and political interests controlling the market. Prices are now driven by managed liquidity, designed to trap traders and create narratives. As crypto evolves from a fringe asset to a strategic tool, success requires adopting an institutional mindset with patience, risk control, and long-term strategy.

https://x.com/BernieOnChain/status/2001403794438132147?s=20 

Ardoino also emphasized that the involvement of institutional investors in Bitcoin is a sign of its maturing role in global finance. This increased participation could act as a safety net during market volatility, helping to prevent Bitcoin from experiencing extreme price swings. However, Ardoino cautioned that too much institutional control could harm Bitcoin’s decentralized nature, saying, “You don’t want 99% of Bitcoin being institutionalized.”

Ardoino’s Concerns on Europe’s Regulatory Approach

In addition to discussing Bitcoin, Ardoino expressed concerns about Europe’s approach to cryptocurrency regulation. He criticized the European Union’s Markets in Crypto-Assets (MiCA) regulation for its potential to stifle innovation. “Europe will always remain the last wheel of the cart whenever we talk about innovation,” Ardoino said. He argued that European regulators are trying to regulate an industry they do not fully understand, which could delay crypto adoption in the region.

Tether has been among the companies openly opposing certain MiCA regulations, leading to the delisting of Tether’s USDT stablecoin in some European exchanges. Ardoino suggested that this regulatory friction would hinder Europe’s growth in the crypto sector. He believes that, compared to the U.S. and emerging markets, Europe will remain behind in terms of crypto innovation throughout 2026 due to its regulatory approach.

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