Paolo Ardoino, CEO of Tether—the issuer of the world’s leading stablecoin USDT—has highlighted a potential AI bubble as the primary risk to Bitcoin’s stability heading into 2026. In a recent interview on the Bitcoin Capital podcast, Ardoino pointed out Bitcoin’s ongoing strong ties to traditional financial markets, which could expose it to fallout from overhyped AI investments.
Why the AI Boom Could Impact Bitcoin
Ardoino explained that Bitcoin remains “still too much correlated” to broader capital markets. Excessive spending by AI firms on infrastructure creates vulnerability. “That is the so-called AI bubble, this concern about the fact that AI companies are spending too much money in AI infrastructure and data centers and trying to build a gazillion gigawatts of power and installing GPUs,” Ardoino said.
If investor enthusiasm for AI cools in 2026, resulting stock market disruptions in tech-heavy indices could spill over into cryptocurrency prices, given Bitcoin’s sensitivity to risk sentiment.
Reasons for Optimism Amid Risks
Despite this concern, Ardoino sees no other significant threats to Bitcoin in 2026, thanks to rising involvement from pension funds and sovereign entities. These long-term holders provide a stabilizing “institutional floor.”
He anticipates that massive 80% drawdowns, like those in 2022 or 2018, are now unlikely. “So I would imagine that sharp corrections of 80%, like we saw in 2022 or early 2018, might not be the case anymore,” Ardoino predicted.
Ardoino also expressed caution about over-institutionalization: “You don’t want 99% of Bitcoin being institutionalized.”
Bullish Outlook on Real-World Asset Tokenization
Looking ahead, Ardoino is highly enthusiastic about the tokenization of real-world assets (RWA). He forecasts explosive growth in tokenized securities and commodities, declaring they are “going to be massive.”
This trend could enhance blockchain’s credibility, draw more institutional funds, and potentially reduce Bitcoin’s dependence on speculative tech cycles.
Ardoino’s Bearish View on Europe
On a less positive note, Ardoino remains skeptical about crypto progress in Europe. “I’m very bearish on Europe,” he stated, criticizing the region’s regulatory approach under frameworks like MiCA. “Europe will always remain the last wheel of the cart whenever we talk about innovation.”
He argues European regulators are attempting to oversee technologies they do not fully comprehend, hindering advancement compared to other regions.
Key Takeaways for Bitcoin Investors in 2026
Ardoino’s insights underscore a nuanced future for Bitcoin: vulnerable to external market bubbles like AI yet bolstered by maturing fundamentals and institutional support. While the AI-driven risk warrants attention, developments in RWA tokenization and broader adoption could drive long-term resilience.
As Bitcoin continues integrating with traditional finance, monitoring correlations with tech stocks and regulatory shifts will be crucial for navigating 2026.
