As a seasoned crypto investor with over a decade of experience under my belt, I must admit that the recent market trends have been quite unpredictable, to say the least. After anticipating a bullish October, also known as “Uptober”, we’ve found ourselves in the midst of what some are jokingly calling “Rektober”.
Despite anticipation for an uptrend in October, the overall cryptocurrency market has taken a turn on the negative side unexpectedly over the past three days, resulting in a $4.7 billion drop, particularly in the sectors of artificial intelligence (AI) and big-data tokens.
Originally, on September 30, the total value of AI coins was estimated at $38.82 billion. However, as of October 3, its market cap dropped to $34.13 billion. This decline is due to a significant drop in Bitcoin and other altcoins’ values, which has occurred because the general market sentiment has become more negative with the intensification of the Israel-Iran conflict. This has dampened the optimistic outlook for October, known as “Uptober”, that was anticipated by the broader market. Some analysts are humorously referring to this situation as a “Rektober” instead of “Uptober”.
Among various AI and Big data-related tokens, Near Protocol (NEAR) has experienced the most significant drop, falling by 15% over the past week. Currently, the NEAR price stands at $4.56, a decrease of 5.19% compared to its previous value. The token’s 24-hour volatility is at 4.9%, while its market cap and 24-hour volume stand at $5.02 billion and $468.07 million respectively.
Other high-performing tokens such as TAO ($496.5) and Internet Computer (ICP $7.87) have experienced significant price drops of approximately 9.3% and 13.35%, respectively. This decline has influenced the broader AI and big data market, causing tokens like Render (RNDR) to drop by 13.64% to $6.25, and Artificial Superintelligence Alliance (FET) to decrease by 16.68% to $1.38. The 24-hour volatility for these tokens ranges from 3.1% to 6.6%, with market caps ranging from $3.58 billion to $3.71 billion, and 24-hour volumes between $162.54 million and $246.47 million.
Courtesy: CoinMarketCap
Uptober Turns to Rektober?
Historically, October is often a period of growth and stability for both Bitcoin (BTC) and other cryptocurrencies. Traders usually expect an upward trend during this month. However, this year has seen a different story unfold, with approximately $5 billion being wiped off the market cap of AI and big data tokens in just the first three days of October.
The overall cryptocurrency market has experienced a decline as well, due to several factors such as geopolitical issues, regulatory hurdles, and economic concerns on a larger scale. For instance, the Middle East conflict and challenges related to central banking regulations are contributing to this downturn. Furthermore, the Chinese central bank’s $140 billion injection into the market hasn’t resulted in significant increases in cryptocurrency prices, unlike the 20% surge observed in the Chinese stock market following a short squeeze.
Despite the ongoing market downturn, AI coins are doing exceptionally well compared to their performance in July when the sector’s market capitalization was approximately $20 billion. Interestingly, even after the recent decline, they have managed to increase by as much as 70% from that point within just two months. In the span of August and September alone, these AI and Big Data tokens have added an impressive $13 billion to the overall market capitalization.
At the moment, attention is focused on the direction and future movements of Bitcoin’s price. There’s a general sense of optimism that Bitcoin will reach $100K by the end of this year’s Q4. If this happens, it could potentially boost the prices of other cryptocurrencies even more, with sectors like AI-based cryptos and meme coins standing to gain the most from the surge.
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2024-10-03 15:57