AI Bubbles and their Impact on Bitcoin

There are growing concerns that the global equity market may be heading into another bubble fueled by AI’s relentless optimism. Bitcoin could be at risk if the bubble in 2026 bursts.BTC(and the wider crypto market) could be the first ones to feel it.

The key takeaways:

• As debt-funded equity market overstretched and unwind, AI bubble risk could first hit crypto.

• Bitcoin may fall to $60,000–$75,000, but institutional support could help limit losses compared to past crashes.

A bubble of AI can be triggered “severe” Stocks meltdown

Fund managers in November accounted for 45% surveyed Bank of America Flagged an “AI bubbleThe market now sees “as the biggest tail risk” – up from only 11% just a few months ago.

Over half of the respondents believe that AI stocks have already entered a bubble due to high spending and low returns on investments.

AI infrastructure expenditure will increase by 2025 for companies such as Amazon, Microsoft Alphabet and Oracle, among others.

Alexander Joshi is the head of behavioral finance at Barclays UK. He predicts that combined capital spending, also known as capex, will increase 64% annually to exceed $500 billion in 2026.

“Estimates place AI data centres among the largest infrastructure build-outs in modern history,” He wrote Additions to a report published in November:

“AI data centres now drive a significant portion of US GDP growth. While not inherently bad, this dependence is risky if AI momentum stalls. If expectations break, the snapback could be severe.”

HedgieMarkets, a Financial Analyst warned The AI boom could lead to a much harsher crash. 2000s dot-com bubble burstThe sector is estimated to have spent $400 billion dollars in order to produce only $60 billion of revenue by 2025. Most firms will not see any returns.

🦔The AI bubble will pop and it will be worse than anyone expected. Forrester has predicted a correction of the market in 2026. I believe they are being overly optimistic. The sector is spending $400 billion while only bringing in $60 billion in…

— Hedgie (@HedgieMarkets) December 15, 2025

The AI industry is not funded with equity like the dot-com boom. Instead, it’s financed by debt. This increases the chance of a cascading collapse affecting private equity, bankers, insurers and consumers who are already stressed.

Economic historian Carlota Perez The warning was that a crypto- and AI crash could cause a collapse in the global economy. “unimaginable proportions.”

How low will Bitcoin fall if the AI bubble bursts by 2026

The CEO of Tether, Paolo Ardoino warned The year 2026 could see a correction in the AI market that spills over to crypto markets. “biggest risk for Bitcoin,” He cites its positive correlation with US stocks as the reason for his bearish perspective.

Ardoino also added that BTC’s corrective action will be less severe than it was in the 2018 and 2022 bear markets (-84%) due to BTC’s increased institutional exposure.

Bitcoin’s record high, $106,200 was around 30% lower in December than it is today.

Related: Bitcoin’s apparent demand shrinks, signals new bear market: Analysts

Nomad Bullstreet is an Analyst said Bitcoin’s price is unlikely to fall below the average cost of production per coin, which was previously set at $71,000-75,000. BTC’s prevailing bearish flag pattern.

Report attributed to Fundstrat Global Advisors as well FidelityThe. Bitcoin’s price to hit $60,000–$65,000 By 2026.

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