Asia Morning Briefing: Microsoft and Meta Surge on AI Earnings While Crypto AI Tokens Lag

By Sam Reynolds, AI Boost | Updated Jul 31, 2025, 7:10 a.m.

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Microsoft and Meta both rocketed off in after-hours trading after reporting strong earnings, thanks to Artificial Intelligence, but on the crypto side, there wasn't much movement.

What to Know

• Microsoft and Meta reported strong earnings driven by their AI initiatives, yet AI majors saw a slight decline.
• AI tokens, typically aligned with tech earnings, experienced a dip as broader market uncertainty loomed.
• Fed Chair Powell's comments on inflation added pressure to risk assets, affecting crypto market volatility.

Good Morning, Asia. Here's What's Making News in the Markets:

Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook Americas. Artificial Intelligence (AI) majors are slightly down despite blockbuster earnings by tech giants Microsoft (MSFT) and Meta, which cited their respective AI efforts as a catalyst for beating earnings. Microsoft’s cloud revenue jumped 27% to $46.7 billion, with Azure crossing $75 billion annually as demand for AI workloads pushed datacenter capacity past two gigawatts. Meta, meanwhile, reported a 22% year-over-year revenue increase to $47.5 billion, with a 43% operating margin, as AI-powered ad models lifted conversions by up to 5% and engagement on Facebook and Instagram surged. CoinGecko's AI token category, which includes majors like TAO, NEAR, ICP, and RENDER, is down 1.4%. In contrast, the CoinDesk 20, a measure of the performance of the world's largest digital assets, is flat and trading below 4,000. Typically, AI tokens move in sync with earnings from big tech. Nvidia's record-breaking rally in 2024 helped the category push beyond a $10 billion market cap, but bitcoin's rising dominance in the first half of 2025 pulled some air out of the category — and other types of altcoins — pushing it down to below $5 billion. Traders across the crypto world today also took a breather, given the Fed's recent messaging, which perhaps explains AI tokens' muted reception to MSFT and Meta's success.

"While policy remained unchanged, Powell’s remark that tariff-driven inflation may only be beginning added a layer of uncertainty that pressured risk assets across the board," market maker Enflux wrote in a note to CoinDesk.

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"With risk appetite fading and macro messaging turning less predictable, markets may remain in a holding pattern until participants gain clarity on inflation direction and policy response for the next few days or weeks," Enflux continued.

Nvidia is set to report its earnings towards the end of August. Time will tell if the GPU giant's expected solid results will serve as a catalyst for AI token growth.

Market Movements

• BTC: Crypto markets turned volatile on Wednesday as hawkish remarks from Fed Chair Jerome Powell triggered over $200 million in liquidations, with bitcoin briefly falling below $116,000.
• ETH: Ether (ETH) is holding above $3,800, up 1.47%, as corporate treasuries, like SharpLink Gaming, continue to bid on the asset for their balance sheets.
• Gold: Gold fell 1.17% to $3,288.02 on Wednesday as strong U.S. economic data reduced safe-haven demand and reinforced expectations that the Fed will keep rates steady.
• Nikkei 225: Asia-Pacific markets traded mixed Thursday as investors weighed new U.S. tariffs on South Korean imports and awaited the Bank of Japan’s expected decision to hold rates steady.
• S&P 500: The S&P 500 slipped 0.12% to 6,362.90 after Fed Chair Powell signaled no imminent rate cuts amid tariff-driven inflation concerns.

Elsewhere in Crypto

• Trump's Top Crypto Guys: U.S. DeFi Will Thrive, Assures Bitcoin Reserve Is Coming (CoinDesk)
• Polygon suffers hour-long outage weeks after complex hard fork (The Block)
• 10 years on, Ethereum has rebuilt itself time and again without compromising on its values, community members say (The Block)

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Frequently Asked Questions (FAQ)

AI and Market Performance

Q: Why did Microsoft and Meta's AI earnings surge not translate to a rise in crypto AI tokens? A: While Microsoft and Meta saw significant gains driven by AI, the broader crypto market, including AI tokens, experienced a dip. This can be attributed to several factors, including general market uncertainty and hawkish comments from Fed Chair Powell which pressured risk assets. Typically, AI tokens track big tech earnings, but macro-economic factors and overall market sentiment can override this correlation. Q: What is the typical relationship between tech AI earnings and crypto AI tokens? A: Historically, strong earnings reports from major tech companies involved in AI, such as Nvidia, have often led to an increase in the value of crypto AI tokens. This correlation occurs because advancements and positive sentiment in traditional AI markets can spill over into the nascent crypto AI sector. Q: What are some major AI tokens mentioned in the article? A: The article mentions TAO, NEAR, ICP, and RENDER as examples of major AI tokens. Q: How has the market cap of AI tokens been affected recently? A: AI tokens saw their market cap pushed beyond $10 billion in 2024, largely due to Nvidia's rally. However, bitcoin's rising dominance in the first half of 2025 has led to a pullback, bringing the category's market cap below $5 billion. Q: What factors are currently influencing the crypto market's performance, particularly for AI tokens? A: Key factors influencing the crypto market include statements from the Federal Reserve regarding inflation and interest rates, which can lead to broader market uncertainty and affect risk assets. Geopolitical events and new tariffs can also contribute to market volatility.

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Crypto Market AI's Take

The divergence between the strong performance of traditional tech giants like Microsoft and Meta in AI and the lagging crypto AI tokens highlights the current market's sensitivity to macroeconomic factors over sector-specific news. While the underlying technology and demand for AI solutions are clearly robust in the traditional finance space, the crypto market remains susceptible to broader economic pressures, such as inflation concerns and interest rate policies. For investors looking to navigate this landscape, understanding how these macro trends intersect with the potential of AI in the blockchain space is crucial. Our platform offers tools and insights designed to help you make informed decisions, including analyzing AI-driven crypto projects and understanding the broader economic forces at play. Explore our AI Agents section for insights into AI-powered trading tools and our News Hub for real-time market analysis that can help you stay ahead.

More to Read:

• AI Crypto Coins Drive 2025 Innovation as Blockchain and AI Converge
• Top 3 AI Driven Cryptocurrencies to Watch Before Next Bull Run
• Why is Crypto Down Today?

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Source: Asia Morning Briefing: MSFT, Meta Soar on Strong AI Earnings, But Crypto AI Tokens Fail to Follow (CoinDesk, July 31, 2025)