Bitcoin Eyes a Bullish 2026, but Tether CEO Warns AI Bubble Is the Market’s Biggest Threat

The year 2026 may become a turning point for Bitcoin – at least according to Tether CEO Paolo Ardoino. He believes the leading cryptocurrency is heading into a bullish phase, but warns of a serious risk emerging from an unexpected direction: artificial intelligence.

The Risk Called “AI Bubble” In a recent episode of the Bitcoin Capital podcast, hosted by Bitfinex Securities and Blockstream, Ardoino cautioned that the current hype surrounding AI has the hallmarks of a classic investment bubble. Companies in the AI space are spending heavily on data centers, GPU chips, and energy infrastructure – and the pace may not be sustainable. “We’re witnessing aggressive spending and euphoria. If sentiment shifts, a correction could follow – and that may impact Bitcoin,” he warned.

Why Could Bitcoin Be Affected? Although Bitcoin is often promoted as a non-correlated asset, Ardoino argues that reality tells a different story. In times of market stress, crypto assets still tend to follow broader risk sentiment. So if U.S. stock markets – especially AI-heavy sectors – face a strong correction, Bitcoin could follow suit.

No More 80% Crashes? Still, Ardoino remains optimistic. He considers it unlikely that Bitcoin would crash 80% again as it did in 2022 or 2018. The reason? The growing presence of long-term investors – including pension funds, government entities, and major institutions – is changing market dynamics and reducing the risk of panic selling.

The Future Is Tokenization Beyond Bitcoin, Ardoino is also betting on real-world asset (RWA) tokenization. He believes that tokenized securities and commodities will become a key pillar of the crypto industry’s next growth phase, especially as traditional financial players experiment with blockchain-based issuance and settlement.

Harsh Words for Europe: MiCA Stifles Innovation Ardoino didn’t hold back in criticizing the European Union. He argues that Europe is falling behind due to overregulation and a lack of innovation. As an example, he points to the EU’s MiCA regulation, which he says is driving projects away from the region. Tether has refused to adapt its stablecoin to comply with MiCA, resulting in delistings from several European exchanges.

A Warning to Crypto Firms Without a Business Model In closing, Ardoino cautions that crypto companies focused only on asset holding without an actual operational business may struggle in the long run. A healthier strategy, he says, is combining a treasury with functional services – as demonstrated by Twenty One, a Bitcoin company backed by Tether, which aims to offer real Bitcoin services while maintaining a strong BTC reserve. 🔹 2026 could be a pivotal year for Bitcoin – but only if it survives the test of the AI bubble

🔹 Despite the risks, confidence in crypto’s growth remains strong thanks to institutional players and the rise of tokenization

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