Analysis: Amazon's $50 billion AI infrastructure investment boosts sentiment in the cryptocurrency market

According to CoinDesk, the market (especially the crypto market) experienced a significant downturn last week, while on Monday of this week, sentiment saw at least a brief reversal—investors were buoyed by Amazon's (AMZN) announcement to expand artificial intelligence and supercomputing infrastructure for the U.S. government, with a maximum investment of $50 billion.

This news propelled the Nasdaq to rise 2.3% at noon Eastern Time, and the S&P 500 increased by 1.4%. Risk appetite also spread to the crypto market, with Bitcoin's price rebounding to $87,300, after briefly falling below $80,000 on Friday. Nevertheless, Bitcoin is still down more than 7% week-over-week. Benefiting the most from the positive news from Amazon are those Bitcoin mining companies that have adjusted their business models to focus on AI infrastructure and high-performance computing:

• Cipher Mining (CIFR) surged 18%
• CleanSpark (CLSK) and IREN (IREN) both rose 13%
• Hut 8 (HUT) increased by 9%.

Other crypto-related companies also generally rose, including Coinbase (COIN), Galaxy Digital (GLXY), and Bullish (BLSH), with increases ranging from 4% to 5%.