Bitcoin held steady above the $65,000 mark on Thursday as Google parent Alphabet’s earnings report, which raised its artificial intelligence spending forecast, gave a lift to the semiconductor sector and risk assets like crypto. CoinDesk reported that Alphabet’s higher AI capex was seen as a bullish signal for the chip trade, which historically correlates with Bitcoin’s price movements.
Alphabet’s Earnings and AI Spending Boost
Alphabet reported second-quarter revenue that beat Wall Street expectations, but its shares dipped after hours when the company increased its AI infrastructure spending forecast. For the chip supply chain—and by extension, Bitcoin—more spending on AI capacity points to sustained demand for high-performance semiconductors. The chip sector has served as a bellwether for crypto markets over the past year as Bitcoin became increasingly correlated with tech equities.
Institutional demand for Bitcoin also appears to be picking up. Saylor’s Strategy Raises Cash Reserves to $3.2 Billion, Bitcoin Holdings Unchanged underscores the ongoing accumulation and treasury management trend among corporate holders. The spot Bitcoin ETFs recorded a seven-day inflow streak totaling nearly $1 billion, marking the strongest week since early May, data from SoSoValue showed.
Bitcoin’s Tech Correlation and Market Outlook
The link between AI-related compute spending and Bitcoin prices has drawn fresh interest this week. AI Compute Stocks Bounce as Hut 8 and IREN Land Multi-Billion Dollar Contracts highlighted how Bitcoin mining firms are increasingly pivoting to high-performance computing and AI infrastructure, capitalizing on the same trends that buoy chip demand. This dual-use narrative strengthens Bitcoin’s appeal within the broader tech trade.
Broader macro risks remain, however. While Bitcoin’s current momentum has been supported by equity markets, rate-sensitive assets remain under pressure. Bitcoin Wilts as Oil and Rates Rise, Clarity Act Odds Tumble to 38% detailed how rising yields and regulatory uncertainty can quickly erode crypto gains. Traders continue to watch Federal Reserve signals and legislative developments that could affect Bitcoin’s near-term trajectory.
With ongoing ETF inflows and AI-driven chip strength, Bitcoin appears well-positioned to test the upper end of its recent range, though volatility remains a constant feature of the market.
