AI
Bitcoin just exposed a terrifying link to the AI bubble that guarantees it crashes first when tech breaks
Oracle's earnings miss and $80B market cap wipeout show how tightly Bitcoin now tracks AI-driven tech risk, but the policy response to a credit crunch could recreate the liquidity conditions.
On the same tape, Bitcoin slipped below $90,000, likely due to worries over the AI sector denting risk appetite. The single-day episode encapsulates Bitcoin’s new structural vulnerability: it has become the high-beta tail of the AI trade, moving in lockstep with tech equity sentiment and bleeding harder when AI-linked stocks crack.
Besides, big tech companies have raised hundreds of billions of dollars in bonds this year to finance data centers and hardware. Morgan Stanley estimated a funding gap of around $1.5 trillion for the AI infrastructure build-out, and Moody’s chief economist Mark Zandi warned that AI-related borrowing now exceeds tech’s run-up before the dot-com crash.
The math implies that most firms are deeply loss-making and that the wider economy is now partly leaning on an AI investment boom that cannot last indefinitely. The liquidity mechanism that makes an AI bust worse for Bitcoin. If the AI bubble bursts, the damage to Bitcoin will go beyond simple correlation, as AI capex increasingly becomes a credit story.
Estimates indicated that AI-related data center and infrastructure financing deals jumped from about $15 billion in 2024 to roughly $125 billion in 2025, driven by bond issuance, private credit, and asset-backed securities. If an AI bubble pops, those spreads widen, refinancing costs jump, and leveraged funds that were long AI-themed debt and equities are forced to cut gross exposure. Bitcoin sits at the end of that chain.
#CryptoSlate.
