The price of bitcoin and other cryptocurrencies experienced a significant rise early this morning, driven by the soaring share prices of major technology companies Microsoft and Alphabet, after both companies revealed stronger-than-expected results.
Bitcoin surged by 3.45% to $28,337.13, while ether, another popular cryptocurrency, rose by 2.1% to $1,869.46.
Jung-Yu Ma, an analyst at BMO, noted that Microsoft and Alphabet shares also rose in after-hours trading on the New York Stock Exchange, which further contributed to the rebounding price of bitcoin.
Microsoft shares jumped by 8% this morning after the company reported a 9% increase in net profit for the third quarter of 2023, amounting to $18.3 billion, or $2.45 per share, up from $16.73 billion, or $2.22 per share, during the same period last year.
Moreover, Microsoft executives announced that the company had received a multibillion-dollar investment in OpenAI, the maker of ChatGPT chatbot, and that Microsoft will continue to invest in artificial intelligence (AI) as they believe the AI sector will grow and generate more income for the company.
On the Alphabet side, which is the parent company of Google, earnings per share exceeded Refinitiv analysts’ estimates at $1.17, surpassing expectations of $1.07. Additionally, revenue for the first quarter of 2023 rose by 3% to $69.79 billion, up from $68 billion in the same period in 2022 and above expectations of $68.9 billion.
The positive financial results from Microsoft and Alphabet have had a significant impact on the cryptocurrency market, with bitcoin and other cryptocurrencies experiencing notable gains. The strong performance of these technology giants is seen as a positive sign for the overall health of the tech industry and the broader economy, which has contributed to the positive sentiment in the cryptocurrency market.
Investors and analysts will continue to closely monitor the performance of major technology companies and their impact on the cryptocurrency market, as these factors play a crucial role in shaping the fluctuations in cryptocurrency prices. As the tech industry continues to evolve and demonstrate robust financial performance, it may continue to influence the trajectory of cryptocurrencies in the coming days and weeks.