Alphabet’s latest earnings report delivered a mixed outcome for investors. While the technology giant surpassed revenue forecasts, its decision to increase its artificial intelligence investment plans again triggered a sell-off, pushing shares down about 6%.
The company raised its projected AI-related capital spending for the year to between $195 billion and $205 billion, up from the previous estimate of $180 billion to $190 billion. Alphabet also indicated that AI infrastructure spending could rise significantly again in 2027 as it works to satisfy growing demand.
The larger spending commitment has pressured other major technology companies tied to the AI boom. Meta and Amazon both declined roughly 3%, while Apple dropped 1.75% and Microsoft edged down 0.5%.
However, companies supplying the AI computing expansion benefited from the spending shift. Several former Bitcoin mining firms that have moved into AI data center and high-performance computing services saw strong gains. Cipher Mining, Riot Platforms, and Hut 8 advanced around 7%, while TeraWulf, Keel Infrastructure, and IREN gained between 3% and 4%.
In crypto industry news, BitMEX co-founder Arthur Hayes commented on the exchange’s decision to wind down operations. Hayes thanked employees, partners, and customers, saying the platform had built something unique and would close in an orderly manner. Although he helped establish BitMEX in 2014, Hayes has not been involved in the company’s daily operations for several years.
Market conditions were also influenced by escalating Middle East tensions. After Iran-backed Houthi forces were accused of attacking Saudi oil tankers, former U.S. President Donald Trump warned that additional strikes could lead to consequences for Iran and the group.
The developments pushed oil prices about 5% higher, sending crude above $90 per barrel. Nasdaq 100 futures weakened by 1.3%, while Bitcoin fell toward the lower end of the day’s range near $65,100.
On the monetary policy front, the European Central Bank kept interest rates unchanged but maintained a cautious tone, warning that the full effects of the recent energy shock on inflation have yet to appear.
In the United States, weekly jobless claims unexpectedly dropped to 187,000, well below forecasts of 212,000. The sharp decline, while raising some questions about data accuracy, increased pressure on bond markets and strengthened expectations for possible Federal Reserve tightening.
The benchmark 10-year Treasury yield climbed five basis points to 4.71%, reaching its highest point of the year. Markets now price in nearly a 40% probability of a Fed rate increase at the next meeting, compared with almost no expectation just days earlier.
Meanwhile, Goldman Sachs CEO David Solomon backed the proposed Clarity Act, saying the legislation could provide much-needed clarity for digital asset regulation and support healthier market development. His comments came as lawmakers prepared revised language ahead of a potential Senate vote.
Bitcoin’s long-term security also received attention with the launch of the Bitcoin Security Consortium, an initiative designed to strengthen the network against future threats. The group has secured $15 million in combined commitments over three years from founding members across the crypto and financial sectors.
Elsewhere, UK-based Bitcoin treasury firm The Smarter Web Company sold approximately 178 BTC, generating about $11.7 million to repay convertible debt. The company now holds around 2,700 BTC, adding to growing evidence that some corporate Bitcoin holders are reducing exposure.
Despite market uncertainty, institutional interest in Bitcoin remains strong. U.S. spot Bitcoin ETFs attracted nearly $1 billion in inflows over seven consecutive trading sessions, with roughly $500 million entering funds during the current week.
Bitcoin traded near $65,400, showing limited movement as investors assessed Alphabet’s AI spending plans, rising energy prices, and broader economic signals. Other major cryptocurrencies remained relatively stable, with Ether around $1,916, XRP near $1.13, and Solana close to $77.
The next major market catalyst is expected to be the Federal Reserve’s July 28–29 meeting, where policymakers’ decisions could influence the direction of both crypto and traditional financial markets.
