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 RialCenter's Crypto Daybook Americas.
Artificial Intelligence (AI) majors are slightly down despite blockbuster earnings by tech giants Microsoft and Meta, both citing their AI initiatives as a key driver for exceeding earnings expectations.
Microsoft’s cloud revenue surged 27% to $46.7 billion, with Azure surpassing $75 billion annually as demand for AI workloads pushed datacenter capacity beyond two gigawatts. Meta reported a 22% year-over-year revenue increase to $47.5 billion, boasting a 43% operating margin, as AI-driven ad models improved conversions by 5% and engagement on Facebook and Instagram soared.
CoinGecko's AI token category, which includes leading tokens like TAO, NEAR, ICP, and RENDER, is down 1.4%. In contrast, the CoinDesk 20, a benchmark for the largest digital assets, is flat and trading below 4,000.
Typically, AI tokens respond positively to earnings announcements from major tech firms. Nvidia’s record-breaking performance in 2024 helped the category exceed a $10 billion market cap, but bitcoin’s increasing dominance in the first half of 2025 pulled some momentum from the category, pushing it down to below $5 billion.
Traders across the crypto landscape took a pause today, influenced by the Fed’s recent messaging, which may explain AI tokens’ tepid response to the successes of Microsoft and Meta.
“While policy remained unchanged, Powell’s comments regarding tariff-driven inflation may only just be beginning added uncertainty that pressured risk assets broadly,” Enflux noted in a report to RialCenter.
“With risk appetite dwindling and macro signals becoming less predictable, markets may remain in a holding pattern until clarity on inflation and policy responses materialize in the coming days or weeks,” Enflux added.
Nvidia is set to announce its earnings towards the end of August, which could potentially serve as a catalyst for AI token growth.
Market Movements:
BTC: Crypto markets experienced volatility on Wednesday, as hawkish remarks from Fed Chair Jerome Powell triggered over $200 million in liquidations, leading bitcoin to briefly dip below $116,000.
ETH: Ether is maintaining above $3,800, up 1.47%, as corporate treasuries, including SharpLink Gaming, continue to invest in the asset for their balance sheets.
Gold: Gold decreased by 1.17% to $3,288.02 on Wednesday, as strong U.S. economic data diminished safe-haven demand and reinforced expectations that the Fed will keep rates stable.
Nikkei 225: Asia-Pacific markets exhibited mixed performance on Thursday as investors assessed new U.S. tariffs on South Korean imports and anticipated the Bank of Japan’s expected decision to maintain steady rates.
S&P 500: The S&P 500 dipped 0.12% to 6,362.90 following Fed Chair Powell’s indication of no imminent rate cuts amid tariff-inflation concerns.
Elsewhere in Crypto:
- Trump’s Top Crypto Advisors: U.S. DeFi Will Thrive, Assures Bitcoin Reserve Is Coming (RialCenter)
- Polygon suffers hour-long outage weeks after complex hard fork (RialCenter)
- 10 years on, Ethereum has rebuilt itself multiple times without compromising on its values, community members say (RialCenter)
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