Paolo Ardoino, the CEO of Tether, warns that the artificial intelligence bubble could affect Bitcoin in 2026.
He says that the explosion of the artificial intelligence bubble could create a state of uncertainty at the entire market level.
Arduino does not expect deep crashes in the price of Bitcoin like previous cycles.
The increasing reliance of institutions on Bitcoin may contribute to the stabilization of its prices.
Tether CEO Paolo Arduino warned that a potential bubble in the artificial intelligence sector could become the biggest threat facing $BTC in 2026. His remarks came during a discussion about future market trends and the growing relationship between artificial intelligence and cryptocurrencies.
Despite warning about the risks of artificial intelligence to Bitcoin, Arduino does not expect the digital currency to face the deep crashes it experienced in previous market cycles. He believes stronger institutional participation may help mitigate sharp price declines.
Why might artificial intelligence affect Bitcoin?
Artificial intelligence has become one of the fastest-growing sectors in the technology world. Many investors are pouring money into associated companies and projects. Arduino believes this rapid growth may lead to an overly heated market.
If the artificial intelligence bubble bursts, it could cause widespread panic in financial markets. Bitcoin often reacts to global risk events, making it prone to pressure during periods of fear or sudden uncertainty.
Arduino states that Bitcoin could come under pressure if investors rush to reduce their exposure to high-risk assets. However, he does not see artificial intelligence as a direct threat to Bitcoin's long-term value.
Institutional adoption changes the equation
According to Arduino, the structure of the Bitcoin market looks completely different today. Major institutions are holding Bitcoin through exchange-traded funds (ETFs), investment funds, and corporate treasuries. This enhances demand and provides deeper liquidity.
In previous cycles, Bitcoin heavily relied on individual traders. When market sentiment deteriorated, prices would collapse quickly. However, Arduino sees this pattern beginning to change.
Institutions tend to invest with longer time horizons and manage risks differently. This may help slow the pace of sharp sell-offs during upcoming downturns.
Predictions for a decrease in sharp crashes in Bitcoin
Arduino does not expect Bitcoin to repeat the dramatic crashes it experienced in previous years. He asserts that the market has matured, and that better infrastructure, clearer regulations, and broader adoption are all factors that now support prices.
Despite the possibility of corrections, he believes they will be less violent. Bitcoin has gained increasing status as a hedge against inflation and currency weakness.
This growing role may help enhance price stability during periods of global economic pressure.
A look at 2026
Arduino's statements highlight a fundamental shift in the market's view of cryptocurrencies. Risks no longer only come from within the sector, but external trends – such as the wave of optimism around artificial intelligence – are playing a larger role.
However, Arduino remains confident about the long-term future of Bitcoin. Institutional trust and increasing usage continue to bolster the position of the digital asset.
As we approach 2026, investors may closely monitor artificial intelligence markets. However, the increasing maturity of Bitcoin may help it better withstand future shocks than it has in the past.
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