AI Bubble Burst May Shake Bitcoin in 2026: Tether CEO

Crypto News AI

AI Bubble Burst Could Rock Bitcoin in 2026, Warns Tether CEO

Written by Aaron S.,

Editor-In-Chief

Last Updated: December 18, 2025

Key Takeaways

Tether CEO Paolo Ardoino warns that a potential AI investment bubble could ripple into US markets and impact Bitcoin by 2026;
Ardoino expects fewer extreme Bitcoin crashes ahead by citing growing demand from pensions, institutions, and even governments;
While optimistic on tokenization, Ardoino cautions against excessive institutional control and urges DAT firms to add real utility.

Stop overpaying - start transferring money with Ogvio. Sign up, invite friends & grab Rewards now! 🎁

AI Bubble Burst Could Rock Bitcoin in 2026, Warns Tether CEO

BITDEGREE IN YOUR SOCIAL FEED

Tether's USDT $1.00 chief executive officer, Paolo Ardoino, flagged a possible AI-related bubble as a threat to Bitcoin BTC $85,785.33 before 2026.

Ardoino spoke during an appearance on the Bitcoin Capital podcast, co-hosted by Bitfinex $582.09M Securities and Blockstream.

He suggested the so-called AI bubble stems from major investments in AI infrastructure. He noted that companies are pouring funds into data centers and energy systems powered by graphics processing units.

What is Staking Crypto? (Rewards & Risks Explained SIMPLY)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

The executive framed a scenario in which shifts in sentiment toward AI in 2026 could cause issues across US stock markets and, in turn, affect Bitcoin.

Even so, he expressed confidence that catastrophic setbacks, such as the 80 % crashes observed in 2022 or 2018, are less likely in the future. Ardoino highlighted demand from pensions and governments as stabilizing forces for Bitcoin.

Despite optimism about tokenization and institutional adoption, Ardoino raised concerns about excessive institutional control over Bitcoin.

Regarding digital asset treasury (DAT) firms, Ardoino stressed that they should also deliver operational services. He mentioned Twenty One, a Tether-backed Bitcoin enterprise, as an example of a firm that blends treasury strength with business functionality.

A group of Bitcoin proponents and crypto fund managers recently urged faster development of quantum‑resistant signature technology. What did they say? Read the full story.