Financial analysts are raising alarms that a potential burst of the artificial intelligence (AI) stock bubble in 2026 could trigger a significant Bitcoin price decline. According to recent reports, Bitcoin (BTC) could fall to a range of $60,000 to $75,000 in such a scenario, though its average production cost of $71,000-$75,000 is seen as a key support level.
The warning stems from growing concerns over an AI-driven market bubble. A Bank of America survey revealed that 45% of fund managers consider the AI bubble the biggest tail risk for markets, with over half believing AI stocks are already in bubble territory. Experts note massive investments by companies like Meta, Microsoft, and Amazon into AI infrastructure, which, while driving U.S. GDP growth, could lead to a severe market correction if expectations are not met.
Tether CEO Paolo Ardoino has specifically highlighted the risk of spillover into crypto markets, citing Bitcoin's positive correlation with U.S. equities as a vulnerability. Analysts like Nomad Bullstreet suggest that while institutional support for Bitcoin—which has grown substantially—could cushion the fall compared to past crashes (like the 77% drop in 2022 or 84% in 2018), a broad AI sector correction would still exert heavy downward pressure.
Simultaneously, the Bitcoin mining industry is facing its own "reckoning" heading into 2026. The 2024 halving drastically reduced block rewards, creating what is described as the "harshest margin environment of all time." Hashprice—a key profitability metric—plummeted to around $35 per petahash per second in 2025 from an average of $55, while operational costs rose to an average of $70,000 per mined Bitcoin.
In response, major miners are pivoting to AI and high-performance computing (HPC) services to diversify revenue streams. Companies like HIVE Digital Technologies, Core Scientific, and Riot Platforms are repurposing infrastructure for GPU-based workloads. This shift is expected to accelerate in 2026, alongside industry consolidation as smaller players struggle. Public miners also face volatility from large Bitcoin holdings and reliance on equity-linked financing for capital.
