Nvidia’s latest outlook and continued AI spending by major technology firms including Microsoft, Amazon, Google, and Meta suggest markets may need to further scale back expectations for aggressive Federal Reserve easing as growth remains resilient.

Over the past two years, stronger AI-related guidance and rising capital expenditure from hyperscalers have frequently coincided with elevated U.S. Treasury yields and reduced expectations for near-term rate cuts.

Markets increasingly view AI spending as a structural growth driver capable of supporting earnings resilience and broader economic activity despite restrictive monetary conditions.

For crypto markets, this matters because Bitcoin and Ethereum have increasingly traded like liquidity-sensitive risk assets during periods of strong technology momentum.

During major AI-led equities rallies since the post-ChatGPT cycle, BTC and ETH have shown strong correlation with the Nasdaq and large-cap technology stocks, with it often exceeding 0.7 during periods of positive earnings revisions and stronger AI spending expectations.

This suggests digital assets remain closely tied to broader risk sentiment and liquidity conditions. If AI spending continues supporting growth expectations and delaying aggressive Fed easing, crypto markets could continue benefiting from stronger technology-led risk appetite.

However, any slowdown in AI investment or weaker corporate spending signals may begin weighing on both technology equities and digital assets.

Ignacio Aguirre, CMO at Bitget

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