The Bank of England has issued a warning about the potential financial risks posed by the global AI spending boom, which is projected to reach $5 trillion over the next five years. The central bank expressed concerns that this surge, largely driven by debt and inflated valuations, could spill over into broader markets, including cryptocurrencies. It noted that half of future AI infrastructure spending is expected to come from external borrowing, with rising credit stress and widening credit default swap spreads indicating potential defaults. The report highlights that AI has been a significant driver of S&P 500 gains in 2025, raising fears of a bubble similar to the dotcom era. A sharp decline in AI-related stocks could negatively impact household wealth and increase borrowing costs, indirectly affecting the crypto markets. Nvidia, with a market cap of $4.37 trillion, is identified as a key player, with its extensive ecosystem and partnerships potentially amplifying contagion risks.