Bitcoin dipped below $66,000 on Wednesday, tracking a broader pullback in AI-linked assets as traders turned cautious ahead of Alphabet's quarterly earnings. The move snapped a two-day recovery in chip stocks, which had been buoyed by optimism around artificial intelligence spending.
Bitcoin and the AI trade
This month, Bitcoin has moved in near lockstep with the AI trade. When chip stocks rallied Monday and Tuesday, Bitcoin climbed with them. Now that the rebound has stalled, Bitcoin is giving back those gains. The correlation isn't new, but it's been unusually tight in July — both markets are reacting to the same macro currents and sector-specific signals.
Alphabet's report in focus
Alphabet reports after the bell, and its numbers are the next big test for the AI narrative. If the company shows strong cloud revenue or signals heavy capital spending on AI infrastructure, that could lift sentiment across tech and crypto alike. A miss, or cautious guidance, would likely reinforce the current pullback. Traders are watching for any mention of AI-driven ad growth or Google Cloud performance.
Bitcoin is now testing the $66,000 level — a zone that's acted as both support and resistance over the past few weeks. The immediate catalyst is Alphabet's earnings call. Beyond that, the market is waiting for the next Fed meeting and any regulatory headlines, but for now all eyes are on Mountain View. Alphabet's numbers will likely set the tone for the rest of the week.
