AI Infrastructure Bubble Risk: Risk Assets First in Line
The Bank for International Settlements (BIS) has issued a warning that if the combined trillion-dollar AI infrastructure investments by five major tech giants in 2025-2026 fail to deliver expected returns, it could trigger severe funding tightening and financial contagion. In this scenario, Bitcoin and other risk assets would be the first to suffer.
While loose monetary policy may benefit Bitcoin in the long term, short-term liquidity tightening will force Bitcoin to move in tandem with other high-beta assets. Investors should be alert to the contagion risk from a potential AI bubble burst to the crypto market.
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