Good Morning, Asia. Here’s what’s happening in the markets today:
Artificial Intelligence (AI) majors are experiencing a slight downturn despite impressive earnings from tech giants Microsoft (MSFT) and Meta. Both companies credited their AI efforts for surpassing earnings expectations. Microsoft reported a 27% increase in cloud revenue, reaching $46.7 billion, with Azure surpassing $75 billion annually due to the growing demand for AI workloads. Meta saw a 22% year-over-year revenue growth to $47.5 billion, with a 43% operating margin, thanks to AI-powered ad models that boosted conversions by up to 5% and increased engagement on Facebook and Instagram.
In the cryptocurrency market, AI tokens, including TAO, NEAR, ICP, and RENDER, are down 1.4% according to CoinGecko’s AI token category. Meanwhile, the CoinDesk 20, which measures the performance of the world’s largest digital assets, remains flat and is trading below 4,000. The performance of AI tokens often aligns with the earnings of major tech companies. Nvidia’s impressive rally in 2024 propelled the AI token category to a market cap exceeding $10 billion. However, the dominance of bitcoin in the first half of 2025 led to a decline in the category’s market cap, falling below $5 billion.
Traders in the crypto space are currently taking a cautious approach following the Federal Reserve’s recent messaging. The Fed’s Chair, Jerome Powell, hinted at potential inflation concerns related to tariffs, which has created uncertainty and weighed on risk assets across the board. As a result, market participants are awaiting further clarity on inflation trends and policy responses before making significant moves.
Looking ahead, Nvidia is scheduled to report its earnings later in August. The market will be closely watching to see if the GPU giant’s strong results will act as a catalyst for the growth of AI tokens.
Market Movements:
– BTC: Bitcoin experienced volatility on Wednesday, with over $200 million in liquidations triggered by hawkish remarks from Fed Chair Jerome Powell. The price briefly fell below $116,000.
– ETH: Ether (ETH) is holding steady above $3,800, up 1.47%. Corporate treasuries, such as SharpLink Gaming, continue to show interest in adding ETH to their balance sheets.
– Gold: Gold prices dropped by 1.17% to $3,288.02 on Wednesday as strong U.S. economic data reduced safe-haven demand and reinforced expectations of steady interest rates from the Fed.
– Nikkei 225: Asia-Pacific markets displayed mixed trading on Thursday as investors assessed new U.S. tariffs on South Korean imports and awaited the Bank of Japan’s decision on interest rates.
– S&P 500: The S&P 500 declined by 0.12% to 6,362.90 after Fed Chair Powell indicated no immediate rate cuts amid concerns about tariff-driven inflation.
In other crypto news:
– Trump’s Top Crypto Guys: U.S. DeFi Will Thrive, Assures Bitcoin Reserve Is Coming (CoinDesk)
– Polygon experiences hour-long outage weeks after complex hard fork (The Block)
– 10 years on, Ethereum has continuously evolved without compromising its values, community members praise (The Block)
Stay tuned for more updates on market movements and cryptocurrency news.