Asia Morning Briefing: MSFT, Meta Soar on Strong AI Earnings, But Crypto AI Tokens Fail to Follow

By Sam Reynolds, AI Boost | Edited by Aoyon Ashraf

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Microsoft and Meta both rocketed off in after-hours trading after reporting strong earnings, thanks to Artificial Intelligence (AI), but on the crypto side, there wasn't much movement. AI majors are seeing a slight decline despite the blockbuster earnings from tech giants Microsoft (MSFT) and Meta, which both cited their respective AI efforts as a catalyst for beating earnings expectations. Microsoft's cloud revenue surged 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 saw a significant surge. In contrast, CoinGecko's AI token category, which includes prominent tokens like TAO, NEAR, ICP, and RENDER, is down 1.4%. The broader crypto market, as measured by the CoinDesk 20, a benchmark of the largest digital assets, is flat, trading below the 4,000 mark. Typically, AI tokens tend to move in sync with earnings from major tech companies. While Nvidia's record-breaking rally in 2024 propelled the AI token category beyond a $10 billion market cap, the rising dominance of Bitcoin in the first half of 2025 has tempered the growth of the AI token sector, pushing its market cap below $5 billion. Traders across the crypto world are also taking a breather, likely influenced by recent commentary from Fed Chair Powell regarding inflation. Powell's remarks suggested that tariff-driven inflation may just be beginning, adding a layer of uncertainty that has pressured risk assets across the board. This cautious sentiment suggests that markets may remain in a holding pattern until there is greater clarity on the direction of inflation and the Federal Reserve's policy response. Nvidia is slated to report its earnings later in August, and its results will be closely watched to see if they can provide a catalyst for renewed growth in AI tokens.

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Market Movements:

• BTC: Crypto markets experienced volatility on Wednesday, triggered by hawkish remarks from Fed Chair Jerome Powell, which led to over $200 million in liquidations. Bitcoin briefly dipped below $116,000.
• ETH: Ether (ETH) is holding above $3,800, showing a 1.47% increase, as corporate treasuries, such as SharpLink Gaming, continue to acquire the asset for their balance sheets.
• Gold: Gold prices fell 1.17% to $3,288.02 on Wednesday, as strong U.S. economic data reduced safe-haven demand and reinforced expectations of the Fed maintaining steady interest rates.
• Nikkei 225: Asia-Pacific markets traded mixed on Thursday, with investors assessing new U.S. tariffs on South Korean imports and awaiting the Bank of Japan's anticipated decision to maintain its current interest rates.
• S&P 500: The S&P 500 closed down 0.12% at 6,362.90 after Fed Chair Powell signaled no imminent rate cuts due to concerns over tariff-driven inflation.

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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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FAQ

Market Performance and AI Tokens

Q: Why did tech giants like Microsoft and Meta see their stock prices soar after their AI earnings reports? A: Both Microsoft and Meta reported strong financial results that exceeded expectations, largely driven by their significant investments and progress in Artificial Intelligence initiatives. These AI efforts have become key revenue generators and growth drivers for these companies. Q: What is the current trend for AI-focused cryptocurrencies? A: Despite the positive news from major tech companies, AI-focused cryptocurrencies, as tracked by CoinGecko's AI token category, have experienced a slight decline, indicating a divergence between traditional tech stock performance and the crypto AI sector. Q: What factors are influencing the performance of AI crypto tokens? A: Several factors are influencing AI crypto tokens, including broader market uncertainty, uncertainty surrounding Federal Reserve policy on inflation, and the general market sentiment towards risk assets.

Macroeconomic Influences

Q: How do Federal Reserve comments impact the crypto market? A: Hawkish comments from the Federal Reserve, particularly regarding inflation and interest rates, tend to put pressure on risk assets like cryptocurrencies. This can lead to increased volatility and a cautious market sentiment, affecting the performance of tokens, including AI-related ones. Q: What is the current economic outlook affecting crypto trading? A: Recent economic data and commentary from Fed Chair Powell suggest a potentially prolonged period of steady interest rates due to inflation concerns. This macro environment can make investors more hesitant to invest in riskier assets, including many cryptocurrencies.

Future Outlook

Q: What is the market anticipating regarding Nvidia's upcoming earnings? A: Nvidia, a major player in AI hardware, is expected to report strong earnings. The market is keenly watching to see if Nvidia's performance can provide a positive catalyst for the broader AI token sector in the cryptocurrency market.

Crypto Market AI's Take

The recent divergence between the soaring performance of tech giants leveraging AI and the muted response of crypto AI tokens highlights a complex market dynamic. While companies like Microsoft and Meta are translating their AI advancements into tangible revenue growth, the cryptocurrency market often reacts to different catalysts, including macroeconomic trends and specific tokenomics. At Crypto Market AI, we leverage advanced AI agents to analyze these intricate relationships. Our platform provides real-time market intelligence and insights into how broader economic factors, such as Federal Reserve policy, influence both traditional markets and digital assets. Understanding these interconnected forces is crucial for navigating the current landscape, and our AI-driven analysis aims to equip investors with the necessary tools for informed decision-making in the evolving world of AI and crypto.

More to Read:

• AI-Driven Crypto Trading Tools Reshape Market Strategies in 2025
• Understanding Ripple: The Cryptocurrency Powering Global Payments
• How to Read Cryptocurrency Charts: A Beginner to Advanced Guide

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Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.

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Source: Originally published at CoinDesk on July 31, 2025.