Bitcoin Dips as Iran Conflict Escalation Pushes Oil Past $90

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In equity markets, Alphabet Inc. reported strong revenue results but unsettled investors by increasing its projected spending on artificial intelligence, sending its stock down roughly 6%.

The company now expects AI-related capital expenditures to reach between $195 billion and $205 billion this year, with plans for a further substantial increase by 2027. This heavier spending outlook is weighing on other major tech firms reliant on AI infrastructure, including Meta Platforms and Amazon, both down around 3%. Apple Inc. slipped 1.75%, while Microsoft edged lower by 0.5%.

Meanwhile, companies positioned to benefit from increased AI infrastructure investment—particularly former Bitcoin miners pivoting to compute services—are rallying. Firms like Cipher Mining, Riot Platforms, and Hut 8 climbed about 7%, while TeraWulf and IREN posted gains of 3%–4%.

Separately, Arthur Hayes commented on the shutdown of BitMEX, thanking partners, employees, and users while emphasizing the platform’s legacy and stating it would close on its own terms. Hayes, who co-founded the exchange in 2014, has not been involved in daily operations for several years.

Geopolitical tensions also weighed on markets. Donald Trump warned of potential retaliation after Iran-backed Houthi forces reportedly attacked Saudi oil tankers. Oil prices surged roughly 5% on the day, pushing above $90 per barrel, while Nasdaq 100 futures dropped 1.3% and Bitcoin hovered near session lows around $65,100.

On the macroeconomic front, the European Central Bank kept interest rates unchanged but maintained a hawkish stance, noting that the full inflationary impact of energy shocks has yet to materialize. In the U.S., initial jobless claims fell sharply to 187,000—far below expectations—adding pressure on bond markets. The 10-year Treasury yield climbed to 4.71%, its highest level this year, and expectations for a Federal Reserve rate hike next week jumped to nearly 40%.

In policy developments, David Solomon expressed support for the proposed Clarity Act, arguing it would provide clearer rules for digital assets and support market growth. His comments come as lawmakers prepare for a possible Senate vote.

In the crypto sector, a new initiative called the Bitcoin Security Consortium has been launched to strengthen Bitcoin’s long-term resilience, backed by $15 million in pledged funding from major industry players.

Meanwhile, U.K.-based The Smarter Web Company sold around 178 BTC, raising approximately $11.7 million to repay debt. The firm now holds about 2,700 BTC, reflecting a broader trend of treasury companies liquidating Bitcoin holdings amid market shifts.

Despite market volatility, institutional demand for Bitcoin remains strong. U.S.-listed spot Bitcoin ETFs attracted nearly $1 billion in inflows over seven consecutive trading days, including about $500 million this week alone.

Bitcoin traded around $65,400, remaining relatively stable even as markets reacted to Alphabet’s earnings and rising oil prices. Other major cryptocurrencies, including Ether, XRP, and Solana, showed little movement.

Overall, markets are now focused on the upcoming Federal Reserve meeting, which is expected to be the next major catalyst for both traditional and crypto assets.

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