The Bank for International Settlements (BIS) warns that if the trillion-dollar AI infrastructure investments planned by five major tech giants in 2025-2026 fail to deliver expected returns, it could trigger financing tightening and financial contagion, with bitcoin and other risk assets being hit first. While loose policies may eventually benefit bitcoin, short-term liquidity contraction will force it to suffer alongside other high-beta assets.
The Bank for International Settlements (BIS) has issued a stark warning that the trillion-dollar AI infrastructure investments planned by five major tech giants for 2025-2026 could trigger severe financial repercussions if returns fall short of expectations. The report specifically identifies bitcoin and other risk assets as the first to be impacted in such a scenario.
According to the BIS, a burst of the AI bubble would rapidly tighten market liquidity, forcing bitcoin and other high-beta assets to come under synchronized pressure. Although accommodative monetary policies could provide a long-term tailwind for bitcoin, the short-term liquidity shock would be more immediate and pronounced.
The warning highlights the growing interconnection between global technology investments and the cryptocurrency market, urging investors to monitor the transmission of AI industry fundamentals into risk appetite and market liquidity dynamics.
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