AI tokens plummet in value amid Nvidia litigation
On September 3, the US Department of Justice (DOJ) issued a subpoena to Nvidia amidst inquiries into possible breaches of antitrust laws. Consequently, Nvidia's stock has plummeted by 8.3% over the week, significantly impacting the performance of artificial intelligence (AI) related cryptocurrencies, which have experienced a steeper decline than the market average.
Leading cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) saw their value drop by 4.3% and 4.4% respectively in the last 24 hours. In contrast, AI-centric tokens underwent a sharp 7.1% decrease within the same period, marking one of the most significant daily downturns for a cryptocurrency category, as per CoinGecko’s statistics. Their average weekly loss has reached 13.7%.
Among the AI cryptos with a market capitalization exceeding $1 billion, Bittensor (TAO) and Artificial Superintelligence Alliance (ASI) tokens experienced the most dramatic daily declines, both plummeting by 7.8%.
Similarly, Near Protocol (NEAR), Render (RENDER), and Internet Computer (ICP) echoed the broader downtrend in the crypto space, recording losses of 4.6%, 5.2%, and 3.7% respectively over the last day.
The sector featuring blockchain AI agents faced even harsher setbacks, with an average drop of 11.1% in the intraday trading. These AI agents, integral to blockchain ecosystems, serve varied roles including trading, mining, validation, or arbitrage.
AI agent tokens such as Phala (PHA) and Oraichain (ORAI) likewise experienced downturns, with their values diminishing by 4.7% and 5.3% in the past 24 hours, respectively.
The cryptocurrency market has been navigating through erratic trading patterns, particularly since March when Bitcoin hit its recent peak near $73,700. Consequently, the current price dip aligns with the expected trading dynamics.
Trader Rekt Capital points out that Bitcoin is maneuvering within a pricing channel on a weekly scale, potentially converting the $58,000 level into a new resistance barrier unless it surpasses $58,300 by the week's close.
Moreover, an anticipation of further declines in September has been outlined, mirroring a Crypto Briefing report. According to Bitfinex analysts, a pullback to the $45,500 level could be on the horizon this month due to Federal Reserve rate adjustments. This forecast, however, is contingent on continuously evolving macroeconomic factors and is not random speculation.
