The Fed’s September meeting minutes identified AI infrastructure borrowing as a factor pushing long-term Treasury yields higher. The Bank for International Settlements estimates the five largest tech companies will spend over $1 trillion on AI-related capital expenditure in 2025-2026, compared to roughly $500 billion today, with potential growth to $3-4 trillion by 2030. The real 10-year yield stood at 2.92% on October 7, creating significant competition for Bitcoin even after the monetary tightening cycle ends. If the AI bubble eventually reverses, it could trigger financial stress leading to liquidity support measures favorable to crypto assets, potentially around late 2027 or 2028 according to some projections.
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