Bank for International Settlements (BIS) warned that the five largest hyperscalers may spend more than $1 trillion on AI‑related capital expenditures in 2025 and 2026. The BIS said the rapid pace of investment raises questions about the timing of returns and the sustainability of financing. In its annual economic report, the BIS noted that intense competition could lead to overinvestment, especially given supply constraints for semiconductors, electricity and other inputs. A disappointment in AI returns could trigger tighter liquidity, causing a pullback in financing and a broader slowdown in credit conditions. Equity markets tied to the AI buildout could fall first, followed by widening credit spreads and pressure on private credit and bank lending. Bitcoin, which is often treated as a risk asset, could be affected when investors de‑risk portfolios, as seen when Bitcoin dropped after a sharp decline in the KOSPI index. Analysts such as Arthur Hayes of BitMEX have suggested that a later easing of monetary policy might benefit Bitcoin, though the timing remains uncertain. The BIS highlighted that the current AI investment boom mirrors previous excesses in canals, railways, electrification and the internet, underscoring potential downside risks for the wider financial system.