AI Optimism Drives Markets Up, Sending Bitcoin Beyond $64,000

Nasdaq 100 futures gained 1.5%, supported by Microsoft’s strong premarket rally after the company reported its quickest cloud growth in four years while maintaining spending discipline.

Investors also received a modestly positive inflation signal. The Core Personal Consumption Expenditures (PCE) Price Index for June increased 0.1%, below market expectations of a 0.2% rise and down from May’s 0.3% increase.

Core PCE inflation climbed 3.3% on a year-over-year basis, matching forecasts and improving slightly from the previous month’s 3.4% reading.

While the PCE index remains a key inflation measure monitored by the Federal Reserve, the latest report reflects June data as markets move toward August.

Other economic indicators showed slower momentum. The initial estimate for second-quarter GDP growth came in at an annualized 1.5%, below the projected 2.1%. Weekly jobless claims also rose slightly to 197,000 from 188,000 a week earlier.

Markets showed limited reaction to the reports. Bitcoin continued to trade with a small gain near $64,800, while Nasdaq futures climbed 1.7% following Microsoft’s earnings-driven surge.

Bond yields moved slightly higher as traders continued assessing the Fed’s decision to leave interest rates unchanged and recent comments from Fed officials.

Aave Considers Shutting Down Six Blockchain Markets

Decentralized lending protocol Aave is exploring a possible exit from six networks—Sonic, Scroll, zkSync, Metis, Soneium, and Aptos—after declining activity reduced revenue below the cost of maintaining those deployments.

The proposal involves $98.1 million in supplied assets and $15.6 million in debt across Aave. The six networks under review represent $12.8 million in supplied liquidity and $4.1 million in outstanding loans.

Deposits have dropped sharply across several platforms. Sonic’s deposits have fallen 74% over six months to $7.6 million, while Scroll’s deposits have declined 86% to $2.2 million.

Aave’s plan would freeze new activity, lower supply and borrowing caps, and raise interest rates to encourage users to repay loans and remove assets from networks that generate less than $5,000 in protocol revenue each.

Bank of England Leaves Rates Unchanged

The Bank of England maintained its benchmark interest rate at 3.75%, citing a faster-than-expected slowdown in inflation, which declined to 2.6%.

However, policymakers warned that inflation could increase later this year due to rising energy costs linked to ongoing tensions in the Middle East.

The decision passed by a 6–3 vote, with three members supporting an increase to 4%. The result marked a shift from the previous meeting’s 7–2 split.

Real 30-Year Treasury Yield Reaches Multi-Year High

The inflation-adjusted yield on the U.S. 30-year Treasury note rose close to 3%, reaching its highest level since 2008.

The move means investors can earn nearly 3% above inflation from long-term government bonds, making non-yielding assets such as bitcoin and gold less appealing compared with fixed-income alternatives. It may also weigh on higher-risk assets, including technology stocks.

A continued increase in real yields could become a challenge for broader risk markets.

Dollar Falls Despite Fed’s Hawkish Position

The U.S. Dollar Index (DXY) declined to 100.67, extending its previous drop even after the Federal Reserve kept rates unchanged in what analysts described as a hawkish hold.

At the same time, uncertainty around inflation and monetary policy pushed long-term yields higher, with the 30-year Treasury yield reaching 5.24%, its strongest level since 2007.

A weaker dollar generally benefits bitcoin, while rising yields can limit demand for risk assets.

Bitcoin Benefits From AI-Driven Market Optimism

Bitcoin traded around $63,900 on Thursday, slightly lower, as U.S. stock futures advanced following Microsoft’s strong earnings report.

S&P 500 futures rose 0.2%, while Nasdaq 100 futures added 0.4%. Microsoft shares surged 8% in premarket trading after its cloud business recorded its fastest growth in four years without a significant increase in expenses.

The results gave investors confidence that AI spending is starting to translate into measurable growth, contrasting with concerns after Alphabet raised its investment outlook.

Bitcoin has continued to follow the AI and semiconductor rally, showing stronger links to broader technology market trends than to crypto-specific developments.