U.S. tech giants have set the equity markets ablaze, with Microsoft and Meta delivering blockbuster earnings that pushed their shares sharply higher. Microsoft rallied nearly 10%, powered by a remarkable 34% growth in its Azure cloud division and a bold commitment to invest $30 billion in new AI data centers—a sign, analysts say, that years of AI spending are now translating into tangible revenue and margin expansion.
Meta soared over 11% as robust digital advertising drove a 22% surge in revenue, with management guiding for next quarter’s sales to exceed Wall Street expectations. Investors also welcomed the company’s strategic positioning of AI investments as a core growth engine for the ad business.
Risk-On Sentiment: Will Bitcoin Break Out?
The combination of surprisingly strong earnings and renewed optimism about AI-driven secular growth has lifted overall risk appetite on Wall Street. Crypto traders are already speculating whether this upbeat market mood will spill over into Bitcoin, which has historically benefited from liquidity-driven risk-on sentiment in equities.
If the capital rotation fueling Microsoft, Meta, and other tech heavyweights continues, a rapid test of the $120,000 mark for Bitcoin is technically plausible. However, should stock market momentum falter, Bitcoin may extend its sideways consolidation or trigger further profit-taking. The powerful rally in U.S. tech stocks provides a tailwind, but does not guarantee an immediate move higher for BTC.
Macro Factors and ETF Flows Remain Critical
While tech-led risk appetite is supportive, other factors—such as the Treasury General Account (TGA) refill and recent U.S. dollar strength—add headwinds for Bitcoin. Additionally, ETF inflows, Nasdaq heavyweight performance, and upcoming macroeconomic data will be key indicators to monitor before betting on an imminent catch-up rally in crypto markets.
Ultimately, while the explosive gains in Microsoft and Meta have injected fresh energy into global markets, investors should remain vigilant. A sustained Bitcoin rally will likely require confirmation from continued ETF inflows and supportive macro dynamics—not just Wall Street’s risk-on euphoria.