Cryptocurrency markets advanced on Thursday alongside a broad technology stock rally, as stronger-than-expected earnings from Microsoft rekindled investor confidence in artificial intelligence and lifted risk appetite across asset classes. Bitcoin rose 2.3% to $67,200, while Ethereum added 3.1% to $3,510, mirroring a tech-heavy session that saw the S&P 500 gain 1.68% and the Dow Jones Industrial Average climb 1.21%.
The catalyst was Microsoft’s quarterly report, which showed revenue of $90.01 billion, an 18% increase that beat estimates of $87.62 billion. Earnings per share of $4.81 handily topped the $4.24 consensus. Azure cloud revenue surged 43%, easing concerns that AI investments might not deliver swift returns. Microsoft shares jumped nearly 17%, dragging the technology sector 5.33% higher—the session’s best-performing group.
The positive sentiment spilled into crypto, which often trades in sync with high-beta tech equities. The correlation has been particularly pronounced in recent months as institutional adoption and the proliferation of Bitcoin ETFs have tied digital assets more closely to traditional risk corridors. With the macro backdrop showing no major negative catalysts, the upbeat tech earnings provided a tailwind for tokens that had been consolidating.
Tesla, another “Magnificent Seven” member, also rebounded 3.7% to $309.44 after six losing sessions, supported by the same AI-driven optimism. The broader market’s relief rally overshadowed Tesla’s own disappointing earnings from the prior week and BMW’s weak second-quarter results, which showed a 35.1% drop in pre-tax profit. BMW stock remained under pressure, but the automotive concern’s struggles were largely ignored by crypto traders focused on the tech upswing.
Still, the crypto advance lacked explosive volume, and market breadth across stocks was narrow, suggesting some caution remains. Bitcoin remains below its 50-day moving average, and technical analysts note that a sustained push above $70,000 would be needed to confirm a trend reversal. For now, however, the Microsoft-led rally has provided a welcome boost, reinforcing the narrative that easing AI anxiety can quickly revive risk-on bets across both equities and digital assets.
