Why a Collapse in $1 Trillion AI Spending Boom Could Hit Bitcoin Traders First

The Bank for International Settlements (BIS) has warned that the $1 trillion artificial intelligence spending boom could become a source of financial stress if expected returns fail to materialize. The BIS noted that the five largest hyperscalers are on track to spend over $1 trillion on AI-related capital expenditure in 2025 and 2026, raising concerns about overinvestment before the business case is proven. A disappointment in returns could trigger a sudden pullback in financing, tightening liquidity across equities and credit, and potentially impacting Bitcoin traders as crypto faces a test between behaving as a risk asset or a monetary hedge.