Tether CEO warns AI bubble burst could pressure Bitcoin in short term
Paolo Ardoino, CEO of Tether, said Bitcoin could still be vulnerable to broader market shocks if a potential AI bubble bursts by 2026, citing its lingering correlation with traditional capital markets.
Speaking on the Bitcoin Capital podcast, Ardoino argued that the massive spending spree by AI companies on data centers, energy infrastructure and GPUs resembles bubble-like behavior, reports Cointelegraph.
He warned that a sharp shift in AI sentiment could trigger turbulence in U.S. equities, which may temporarily weigh on Bitcoin’s price. Despite Bitcoin’s growing narrative as an independent asset, Ardoino said it has not fully decoupled from macro-driven risk cycles. In his view, this exposure remains one of the few notable risks for Bitcoin over the next two years. Still, he stressed that the concern is about short-term volatility rather than a structural weakness in Bitcoin itself. The comments reflect a cautious but not bearish outlook on Bitcoin’s medium-term trajectory.
Why deep Bitcoin crashes may be a thing of the past
Despite flagging AI-related risks, Ardoino said he does not expect Bitcoin to experience the kind of brutal 80% drawdowns seen in 2018 or 2022. He attributed this to deeper institutional adoption, including growing participation from pension funds and governments. According to Ardoino, this expanding base of long-term holders should help absorb shocks and dampen extreme sell-offs.
He also reiterated his bullish stance on real-world asset tokenization, calling tokenized securities and commodities a “massive” growth opportunity. At the same time, he cautioned against excessive institutional dominance in Bitcoin. Ardoino said Bitcoin should remain primarily a neutral, open asset rather than becoming 99% institutionalized. In his view, balance between retail and institutional ownership is critical to preserving Bitcoin’s original purpose.
Bearish on Europe and passive crypto treasury models
While optimistic about Bitcoin and tokenization, Ardoino was notably pessimistic about Europe’s role in crypto innovation. He criticized the region for prioritizing regulation over experimentation, arguing that Europe is attempting to regulate technologies it does not yet fully understand. Ardoino pointed to the EU’s Markets in Crypto-Assets Regulation (MiCA) as an example, noting that Tether has refused to comply, leading many European platforms to delist USDT.
He also expressed skepticism toward crypto treasury companies that exist solely to hold digital assets. According to Ardoino, treasury-focused firms need strong operating businesses to be sustainable long term. He contrasted this with Twenty One, the Tether-backed Bitcoin company, which he said aims to deliver real Bitcoin services alongside its large treasury. For Ardoino, operational value creation, not passive accumulation, will define successful crypto companies going forward.
Recently we wrote that Bitcoin is oscillating near $87,249 after reclaiming short-term ground with a 1.24% daily gain, even as macro and geopolitical stress intensifies.
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