Bitcoin Trades Above $65,000 Amid Rising AI Spending by Alphabet

Bitcoin Surpasses $65,000 as Alphabet Increases AI Investments

Bitcoin is currently trading above $65,000, buoyed by Alphabet’s continued commitment to increasing its spending on artificial intelligence (AI). Although the tech giant reported a 24% rise in revenue for the previous quarter, its stock saw a decline after hours due to a forecasted rise in capital expenditures related to AI.

Investor Confidence in Bitcoin ETFs Grows

In a sign of renewed institutional interest, U.S.-listed Bitcoin exchange-traded funds (ETFs) have attracted nearly $1 billion over the past week, marking the strongest inflows since early May. Alone, this week saw almost $500 million in investments, highlighting a strong comeback for institutional demand.

Market Reaction to Alphabet’s Earnings Report

With Bitcoin trading near $65,400, up 1.4% for the week, the market was largely stable in response to Alphabet’s earnings report. The company not only beat expectations with its revenue but also raised its forecast for capital spending in 2026 to between $195 billion and $205 billion, citing the need to address supply constraints in AI.

Broader Impact on the Chip Market

While Alphabet’s shareholders reacted negatively to the increased spending forecasts, the chip industry saw positive movement. Asian chipmakers experienced gains, with the Kospi index rising by 3.6%. Major companies like Samsung and SK Hynix saw their stock prices increase by over 2%, anticipating a share in the forthcoming AI-related expenditures.

Current Cryptocurrency Prices

As the week progresses, other cryptocurrencies are showing mixed results. Ethereum stands near $1,916, XRP is at $1.13, and Solana rests at $77. In the broader commodities market, oil prices continue to climb, raising concerns about inflation.

The next significant financial event will be the Federal Reserve’s meeting on July 28-29, where further economic outlooks will be established.