A surge in AI computing demand has lifted cryptocurrency mining firm CoreWeave by 10%-20% following its $4 billion deal with OpenAI, while crypto exchange Coinbase rebounded 9% after a data breach and SEC probe.
Crypto Market Rally: AI Computing Demand Drives Gains
Optimism Surrounds CoreWeave‘s $4 Billion Deal with OpenAI
Crypto-adjacent data center stocks surged as investors eagerly awaited news on the impact of artificial intelligence (AI) computing demand. The latest development, a ‘$4 billion deal between CoreWeave and ‘ChatGPT-developer’ OpenAI, lifted these firms by 10%-20%. This boost came despite Bitcoin‘s flattish performance, which saw the cryptocurrency trading around $104,000.
The global market for artificial intelligence (AI) computing is experiencing rapid growth, driven by increasing adoption in industries such as healthcare, finance, and retail.
According to a report, the AI computing market is expected to reach $190 billion by 2025, up from $6.7 billion in 2018.
This surge is attributed to advancements in deep learning algorithms, improved data storage, and increased access to high-performance computing resources.
AI-Driven Rally: A New Frontier for Crypto Mining
The rally extended to Galaxy Digital, a crypto mining firm that rose 8% on its Nasdaq debut. The company’s data center business and management of crypto investments were seen as key drivers of the growth. CoreWeave‘s deal with OpenAI was also credited for boosting confidence in AI-linked infrastructure bets.
Coinbase Rebounds After Data Leak and SEC Probe
Crypto exchange Coinbase rebounded 9% after a sharp drop triggered by customer data breach and ongoing regulatory scrutiny by the U.S. Securities and Exchange Commission (SEC). The firm’s stock had plummeted on Thursday, but recovered as investors reassessed its prospects.
Market Outlook: Inflation Expectations Remain High
Meanwhile, inflation expectations reached multi-decade highs, with consumers expecting 1-year inflation to rise to 7.3%. This could have a second-order impact on markets by discouraging Fed policymakers from cutting rates in the next months.
DeFi Development Surges on Validator Operation Deal
DeFi Development, a real estate tech firm, surged 45% to fresh record highs after striking a validator operation deal with memecoin BONK. The firm added more SOL tokens to its balance sheet as part of the agreement.
