Alphabet’s Bigger AI Budget Lifts Chip Stocks as Bitcoin Holds Above $65,000

Bitcoin has become increasingly sensitive to the artificial-intelligence trade as crypto assets and technology shares respond to the same shifts in global risk appetite. The connection has deepened as some Bitcoin miners repurpose power and computing infrastructure for AI data centers, making Alphabet’s earnings an important gauge of whether enthusiasm for heavy AI spending — and demand for risk assets more broadly — can endure.

Bitcoin traded near $65,900 in the latest session, remaining below the closely watched $66,000 level as traders held back ahead of Alphabet’s latest results. Investors are focused on signals about AI investment, infrastructure demand and the durability of the technology rally. A strong report could support sentiment across AI-linked shares and crypto, while signs of weaker returns on spending could add pressure to Bitcoin’s near-term direction.

Bitcoin, the world’s largest digital asset, is closely linked to global macroeconomic conditions and the technology sector. Recent geopolitical conflicts have triggered sharp volatility in crypto markets. Strength in semiconductor and AI-related stocks, coupled with fluctuations in the yen, is now providing fresh impetus for crypto prices. The moves show how deeply cryptocurrencies have become intertwined with traditional finance and made them an important market signal for investors.

Bitcoin rebounded 3.5% to nearly $64,000 on July 16, according to CoinMarketCap, recouping losses caused by earlier geopolitical tensions and taking its weekly gain to 4.2%. Major cryptocurrencies including Ether and Solana also broadly advanced. Analysts said strength in Asian semiconductor and AI-related stocks, along with a firmer yen, were the main drivers of the rally.