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

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.

Key Highlights

• Microsoft and Meta reported strong earnings driven by their AI initiatives, yet AI-focused crypto tokens saw a slight decline.
• AI tokens, which typically correlate with tech earnings, experienced a dip amid broader market uncertainty.
• Fed Chair Jerome Powell’s comments on inflation added pressure to risk assets, contributing to crypto market volatility.

Market Overview

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. Despite blockbuster earnings by tech giants Microsoft (MSFT) and Meta, which cited their AI efforts as a key growth driver, AI majors in the crypto space are slightly down. 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 reported a 22% year-over-year revenue increase to $47.5 billion, boasting a 43% operating margin. AI-powered ad models lifted conversions by up to 5%, and engagement on Facebook and Instagram surged. CoinGecko's AI token category, which includes tokens like TAO, NEAR, ICP, and RENDER, is down 1.4%. In contrast, the CoinDesk 20, a benchmark of the world's largest digital assets, is flat and trading below 4,000. Historically, AI tokens have moved in sync with earnings from big tech. Nvidia’s record-breaking rally in 2024 helped the category push beyond a $10 billion market cap. However, bitcoin's rising dominance in the first half of 2025 pulled some momentum away from AI tokens and other altcoins, pushing the category below $5 billion. Traders across the crypto world took a breather amid the Fed's recent messaging, which likely contributed to AI tokens' muted response 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 expected to report its earnings towards the end of August. Its results could serve as a catalyst for renewed growth in AI tokens.

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 Token Performance

Q: Why did AI tokens in crypto not rise with Microsoft and Meta's AI-driven earnings? A: Historically, AI tokens have shown correlation with tech earnings. However, factors such as broader market uncertainty, Fed policy commentary on inflation, and a general shift in investor sentiment can lead to a decoupling of performance. Bitcoin's increasing dominance in the market may also be drawing momentum away from altcoins, including AI tokens. Q: What is the historical correlation between tech AI earnings and crypto AI tokens? A: Historically, strong AI-related earnings from major tech companies like Nvidia have often boosted the performance of crypto AI tokens. This suggests a perceived link between advancements and investment in artificial intelligence across both traditional and decentralized markets. Q: What is the outlook for AI tokens following Nvidia's upcoming earnings report? A: Nvidia's earnings report is anticipated to be a significant catalyst for AI tokens. Positive results and forward-looking statements regarding AI development could potentially reignite interest and drive renewed growth in the crypto AI sector.

Crypto Market AI's Take

The recent performance of tech giants like Microsoft and Meta, driven by their AI advancements, highlights the immense potential and current demand for artificial intelligence across industries. While the crypto market's AI tokens didn't mirror this surge, it underscores the nuanced interplay of macroeconomic factors, regulatory sentiment, and the evolving crypto landscape. At Crypto Market AI, we leverage sophisticated AI agents and advanced analytics to navigate these complexities, providing insights into the intersection of AI and blockchain. Our platform continuously monitors these trends, offering tools for users to understand and potentially capitalize on the convergence of these powerful technologies. Explore our insights on AI Agents in Trading and our comprehensive Market Analysis section for a deeper understanding of market dynamics.

More to Read:

• Bitcoin Holds Steady Amidst Uncertainty: Navigating the Crypto Landscape
• The Impact of AI on Cryptocurrency Trading Strategies
• Understanding the Latest SEC Decisions on Crypto ETFs

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