Alphabet’s latest earnings report delivered a mixed reaction from investors. Although the company exceeded revenue expectations, its decision to raise its artificial intelligence spending outlook once again pushed shares down by around 6%.
Google’s increased AI infrastructure budget is creating pressure across the broader technology sector. Alphabet raised its expected 2026 capital expenditure range to $195 billion–$205 billion, up from its previous estimate of $180 billion–$190 billion, while signaling that spending could rise further in 2027 as it races to meet AI demand.
The higher spending outlook also weighed on other major AI infrastructure consumers. Meta and Amazon both declined about 3%, while Apple fell 1.75% and Microsoft slipped 0.5%.
Meanwhile, companies benefiting from the AI infrastructure boom continued to gain. Former Bitcoin mining firms that have shifted toward artificial intelligence computing services rallied strongly, with Cipher Mining, Riot Platforms, and Hut 8 climbing roughly 7%. TeraWulf, Keel Infrastructure, and IREN also posted gains of around 3%–4%.
In crypto-related news, BitMEX co-founder Arthur Hayes reacted to the exchange’s planned shutdown, thanking employees, partners, and customers for their support. Hayes said the platform had achieved something unique and would close responsibly on its own terms. He co-founded BitMEX in 2014 but has not held an operational position at the company for several years.
Market sentiment was also affected by renewed geopolitical concerns after Iran-backed Houthi forces reportedly attacked two Saudi Arabian oil vessels. Former U.S. President Donald Trump warned that further attacks could trigger retaliation against Iran and the Houthis.
Oil prices jumped roughly 5% on the news, while Nasdaq 100 futures fell to session lows, down 1.3%. Bitcoin also weakened, trading near the day’s low around $65,100.
The European Central Bank kept interest rates unchanged at its latest meeting but maintained a cautious stance on inflation risks. Officials warned that the full impact of the recent energy price shock has not yet been reflected.
Meanwhile, U.S. weekly jobless claims dropped sharply to 187,000, significantly below the expected 212,000. The unusually low figure raised questions over possible data issues but added pressure on bond markets and increased expectations of further Federal Reserve tightening.
The 10-year U.S. Treasury yield climbed five basis points to 4.71%, reaching its highest level of the year. Traders now see nearly a 40% chance of a Fed rate hike at next week’s meeting, compared with almost zero expectations just days earlier.
On the regulatory front, Goldman Sachs CEO David Solomon voiced support for the Clarity Act, saying the legislation could create a clearer framework for digital assets and improve market stability. His comments came as Republican senators prepared updated bill language ahead of a possible Senate vote.
In Bitcoin security developments, the Bitcoin Security Consortium was launched to strengthen the long-term resilience of the network. The initiative has received $15 million in combined commitments over three years from founding members including major crypto and financial firms.
Bitcoin treasury company The Smarter Web Company also sold around 178 BTC, raising approximately $11.7 million to repay convertible debt. The firm now holds roughly 2,700 Bitcoin, highlighting a broader trend of crypto treasury companies reducing holdings amid changing market conditions.
Despite short-term volatility, institutional demand for Bitcoin remains strong. U.S.-listed spot Bitcoin ETFs recorded nearly $1 billion in inflows over a seven-day streak, with almost $500 million entering the products this week alone.
Bitcoin recently traded around $65,400, down slightly on the day but still higher over the week. The market remained relatively calm following Alphabet’s earnings, while investors continued monitoring AI spending trends, oil prices, and upcoming Federal Reserve decisions.
Major cryptocurrencies showed limited movement, with Ether near $1,916, XRP around $1.13, and Solana close to $77. Hyperliquid was among the weaker performers, falling about 11% over the week.
The next major market focus is the Federal Reserve meeting scheduled for July 28–29, which could determine the near-term direction for both traditional markets and digital assets.
