These have become very reactionary cryptocurrencies to the whims of near-miss developments. The latest dip is directly related to an antitrust inquiry of NVIDIA Corp. The largest price increases in AI tokens over the past eight months have also been related to NVIDIA. However, Tuesday evening saw a big drop in the market, which impacted AI coin prices.
Although the investigation did not significantly influence the general cryptocurrency market, AI coin prices still fell significantly.
Nvidia Hit with Subpoenas, Antitrust Concerns
In more antitrust news, the U.S. DOJ has subpoenaed NVIDIA, among other tech giants. The DOJ is also investigating the possibility that NVIDIA has unfairly caused companies to gain a monopoly by locking them out of their customer base if they choose non-NVIDIA AI chips. The revelations prompted shockwaves in the industry when they were revealed, with shares of NVIDIA crashing by $279 billion after the Volvo-Jaguar-Ireland partnership failed.
It is no surprise that the hurdles at NVIDIA, a big player in AI, have affected all related assets, especially those of the major leading move. Within the last 24 hours, it was registered by all the top 5 most important cryptocurrencies for AI tokens with a decline in market cap. The largest downturn over the past day related to a group called artificial intelligence effort, with its capitalization dropping by less than seven plus four-tenths percentage points and stopping at twenty billion six hundred million. This case represents a more general concern about the future of AI investments under regulatory scrutiny.
AI Coin Projects Market Cap Shrinkages
However, downturns were seen in many prominent AI cryptos. NEAR Protocol (NEAR), Internet Computer (ICP), and Injective(INJ) were the biggest losers. Bittensor (TAO) fared the worst, sinking 11% over that time span following news of NVIDIA. The hardest hit were the Global X China Technology ETF (by 6%) and TAO (-9.4% week-to-date, but it recovered +2.3%).
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A Potential Breakout for TAO
Despite being battered and bruised from last week, TAO has seen better days. The chart signals are promising: According to experts, TAO is forming an ascending triangle which could lead to a breakout. And finally, the last trade opportunity is in TAO with a 43% profit if it breaks $357 up to its target of $513. However, given TAO’s recent jump most buyers at these levels are likely over-eager or jumping on the bandwagons phenomenon/case so let them have heat first till they think wise and I see good entry above pi at the mentioned level for a possible zipper closed long-term one lifestyle position size valid until price declines & hope dies/restocks your ammo elsewhere erleben- ethereum mining contract (marketing protocol) weist eindeutig darauf hin folge! If able to flip $304 into support, the token could see its demand reignite with investors.
Wider Crypto Market Downtrend
The wider cryptocurrency industry was not doing any better. Yesterday NVIDIA Investigation Shakes the Market: 5 AI Coins Plummet to New Lows!
price fell below the $56K mark and is currently more than 4% down. Those losses extended to altcoins, which in turn saw a $200 million figure of leveraged positions liquidated.
The possibility of Bitcoin seeing more liquidation looms as the Bitcoin Fear & Greed Index drops below 30%, a region that indicates entering bear market territory. As per Coin360, the market has fallen 2.12% over the last day, although we had much worse performances during this year.
Awaiting the FED’s Decision
Also on Wednesday, stock indices of the Asia Dow, Nikkei 225, and Nasdaq Composite were taken down. However, investors are directing their attention towards the Federal Reserve interest rate decision on 18th September and expect to see global monetary easing by central banks. The debt ceiling raising would be the government’s action that could spark a Q4 market rally. While over the long-term, Bitcoin is a bona fide Store of Value, in the short-medium term, its pricing continues to be linked to market sentiments.
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