Alphabet’s earnings report later Wednesday is expected to offer investors a clearer picture of whether the enormous spending wave in artificial intelligence is translating into real returns.
Trump Warns of Retaliation Over Strait of Hormuz Attacks
President Donald Trump issued a warning that the U.S. would respond to any attacks on vessels traveling through the Strait of Hormuz.
In a post on Truth Social, Trump said that any future attacks by Iran involving missiles, rockets, drones, or other weapons would trigger U.S. strikes against infrastructure targets, including bridges and power plants.
Markets showed limited reaction to the statement, with crude oil prices continuing to climb while stocks and cryptocurrencies remained under pressure.
OpenAI Boosts AI Infrastructure Spending Plans to $750B
OpenAI has reportedly raised its projected computing expenditure through 2030 to approximately $750 billion, up from an earlier estimate of $600 billion, according to The Wall Street Journal.
The increased spending reflects the company’s push to secure the computing resources required to operate increasingly advanced AI models.
The investment includes building additional data center capacity, including the newly announced $20 billion “Project Camellia” facility in Georgia.
Benchmark Lifts Hut 8 Price Target Following Major Data Center Deal
Benchmark analyst Mark Palmer reiterated his buy rating on Hut 8 (HUT) and increased his price target from $165 to $195 following the company’s agreement on a second $9.8 billion, 15-year lease at its Beacon Point data center campus.
The revised target suggests nearly 80% upside from Hut 8’s previous closing price of $108.98.
Palmer’s valuation is based on a sum-of-the-parts approach that includes the estimated value of Hut 8’s River Bend and Beacon Point contracts, its 60% ownership stake in American Bitcoin Corp., and the market value of its 10,667 BTC holdings reported as of March 31.
Hut 8 shares were down about 1.35% before the market opened.
Oil Surge Pressures Crypto as Crude Hits Six-Week High
Growing tensions between the U.S. and Iran pushed WTI crude prices another 3.2% higher on Wednesday to $87.38 per barrel, marking the strongest level since early June.
The jump in oil prices has renewed inflation concerns, putting pressure on bond markets as both 10-year and 2-year Treasury yields reached new cycle highs.
Only days earlier, traders had largely dismissed the possibility of a Fed rate hike at the upcoming meeting. However, expectations have now climbed to nearly 30%.
The shift has weighed on risk assets, with Nasdaq 100 futures falling 0.8%. Bitcoin also weakened, slipping below $66,000 after touching $66,900 the previous day.
Bitcoin Traders Focus on $63K Support Zone
Bitcoin’s near-term direction depends on three major factors: developments in the U.S.-Iran conflict, market sentiment during earnings season, and the Federal Reserve’s future policy path, according to Daniela Hathorn, senior market analyst at Capital.com.
Hathorn highlighted $63,000 as a crucial support level where buyers have repeatedly defended the market. A hold above this area could indicate that the correction is stabilizing, while a breakdown could lead to additional selling pressure.
On the upside, the $65,000–$66,000 range remains a key resistance zone. A breakout above that level could improve momentum and strengthen the case for another push toward recent highs.
Tesla Faces Different AI Expectations Ahead of Earnings
Tesla’s upcoming earnings report presents a different challenge from other major technology companies.
While investors are looking for Alphabet and other tech giants to demonstrate that massive AI investments are paying off, Tesla shareholders appear to want the company to increase AI spending.
Tesla stock is down 16% this year, and unlike many of its peers, higher AI investment expectations could potentially benefit the stock rather than create concerns, according to Bloomberg.
Bitcoin ETFs Record Sixth Straight Day of Inflows
U.S. spot Bitcoin ETFs extended their positive streak to six consecutive sessions, attracting $203 million in net inflows on Tuesday, according to SoSoValue data.
The six-day run represents the longest period of ETF inflows in roughly three months. Ethereum ETFs also posted positive flows, adding $37.5 million.
During the streak, Bitcoin ETFs collected around $930 million, although that remains below the $2.5 billion lost during the eight-day outflow period at the end of June. Total ETF assets have climbed close to $81 billion, reaching their highest level since mid-June.
Bitcoin gained approximately 2.8% during the six-session advance, briefly touching $66,900 on Tuesday, its strongest level since June 16.
Bitcoin Holds Near $66K as Investors Await Alphabet Results
Bitcoin traded around $65,900 on Wednesday, staying below its recent two-week peak while remaining up about 1.5% for the week.
The market pause mirrored broader risk assets, where a two-day rebound in semiconductor stocks stalled as traders waited for Alphabet’s earnings release after the U.S. close.
Nasdaq 100 futures dropped 0.8%, while South Korea’s Kospi surrendered some early gains and European technology shares also weakened.
Alphabet previously announced plans to raise annual AI-related capital spending to as much as $190 billion. Investors are now looking for proof that those investments are producing meaningful results, especially as chip stocks face concerns over whether the AI spending cycle can continue at its current pace.
Bitcoin has moved in tandem with the AI trade throughout the month, gaining when semiconductor stocks strengthen and declining when technology shares weaken. The connection reflects broader risk appetite and the growing shift of Bitcoin miners toward AI-focused data center operations.
Elsewhere in crypto markets, Ether remained near $1,917, up about 2% over the week, while Hyperliquid lagged with a 2% weekly decline.
Market attention now shifts to Alphabet’s earnings and the Federal Reserve’s July 28–29 meeting for further clues on the outlook for risk assets.
