Bitcoin trades above $65,000 as Alphabet reports mixed earnings and raises AI spending projections, impacting chip stocks positively.
Bitcoin remained strong, trading at approximately $65,400 on Thursday, marking a slight daily decline of 0.3% but a weekly gain of 1.4%, as reported by CoinDesk.
Investor sentiment was cautious ahead of Alphabet's earnings announcement, anticipated to shed light on its AI investment strategies.
The earnings report revealed a 24% increase in revenue, totaling $119.8 billion, along with an impressive 82% growth in the cloud sector, both exceeding market expectations. However, Alphabet also increased its capital spending forecast for 2026 to between $195 billion and $205 billion, up from $180 billion to $190 billion, citing a need to address AI-related demands.
Post-earnings, Alphabet's stock faced a decline in after-hours trading as investors weighed the implications of the heightened spending against a backdrop of declining free cash flow.
Despite concerns for Alphabet shareholders regarding rising expenditures, the surge in capital directed toward AI infrastructure has positively influenced semiconductor manufacturers. Asian chip stocks saw a boost, with the Kospi index rising 3.6%, and both Samsung and SK Hynix recording gains of over 2% in anticipation of benefiting from Alphabet's increased spending.
Other major cryptocurrencies showed little movement, with Ether around $1,916, XRP at $1.13, and Solana at $77, while Hyperliquid experienced an 11% drop during the week. Meanwhile, oil prices continued to rise, prolonging a rally from July that has sparked renewed inflation worries.
The market is now turning its attention to the upcoming Federal Reserve meeting scheduled for July 28 and 29.
