CoinTelegraph
Morgan Creek Capital's Mark Yusko says the AI capex cycle is building into a bubble he expects to burst, with the open question being what happens to Bitcoin when it does.
Why it matters
Yusko's framing connects two narratives that have run in parallel for two years: explosive AI infrastructure spending and Bitcoin's emergence as a portfolio hedge. If the AI trade unwinds, the read is that capital rotating out of AI equities looks for a store-of-value destination, and BTC is one of the few large-cap assets positioned to absorb it. The counter-read is that a risk-off impulse drags BTC down with everything else, treating it as a high-beta tech proxy rather than a hedge.
Market impact
The Bitcoin-AI correlation has flipped multiple times over the past 18 months, with BTC occasionally trading as a risk asset during tech selloffs and as a safe haven during macro stress. Yusko's position is that BTC's scarcity profile wins in the unwind, a view shared by a growing cohort of allocators who treat spot ETF flows as the structural bid underneath the narrative. Whether that bid holds through a true AI-led correction is the test the market has not yet had to pass.
Source: [Why Mark Yusko Is Buying Bitcoin Before October — YouTube](https://www.youtube.com/watch?v=U7IHktprMcQ)
Frequently asked questions
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Who is Mark Yusko and why does his AI bubble call matter?
Mark Yusko is the founder and CIO of Morgan Creek Capital Management. His read on the AI capex cycle carries weight because he has been an early institutional allocator to Bitcoin and frames the two narratives as linked.
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What is the link between the AI bubble and Bitcoin's price?
The argument is that if AI infrastructure spending unwinds, capital rotating out of AI equities looks for a store-of-value destination. Bitcoin is one of the few large-cap assets positioned to absorb that flow, though a risk-off impulse could also drag BTC lower as a high-beta tech proxy.
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Has Bitcoin historically traded as a hedge or a risk asset?
The correlation has flipped multiple times over the past 18 months. BTC has traded as a risk asset during tech selloffs and as a safe haven during macro stress, leaving the question open of which read dominates in a true AI-led correction.
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What role do spot Bitcoin ETF inflows play in Yusko's thesis?
Yusko treats spot ETF flows as the structural bid underneath Bitcoin, supporting the view that institutional demand absorbs risk-off rotations rather than exiting alongside tech equities.
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When does Yusko expect the AI bubble to burst?
Yusko frames the unwind as a question of when, not if, and ties the timing to the broader AI capex cycle reaching saturation rather than to a specific calendar date.
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