The cryptocurrency world just faced a shock. Over three days, AI and big data-related tokens saw their market cap shrink by $4.69 billion. What was once worth $38.82 billion on September 30 dropped to $34.13 billion by October 3. This sharp decline has raised concerns, especially since investors were expecting a positive “UPtober.” Historically, October has been a strong month for the crypto market, but 2024 is not following that trend.
Near Protocol Takes the Biggest Hit
Near Protocol was the one to see the steepest drop among the leading aI tokens. In the last seven days it lost 17.87% of its value and came down to $4.559.
Along with this, other AI tokens like Bitensor and Internet Computer also lost 9.37% and 13.35% respectively. There were times when Bitcoin along with alts were down but the AI tokens were thriving, but now these tokens have also joined their gang.
Broader Market Feeling the Pressure
It’s not just the AI and big data sector that’s feeling the heat. Render and Artificial SuperIntelligence Alliance (FET) also witnessed big losses, dropping by 13.645 and 16.68% respectively. The crypto community has been waiting for bearish September to end to enjoy a rally however, October dashed their hopes. Instead of charts filled with full greens, investors are praying for this bleeding to stop now.
What’s Behind the Sudden Drop?
There are multiple market and non-market factors that are responsible for this sudden crash. Tension in the Middle-East has rattled global markets. Regulatory challenges and other macroeconomic concerns are adding to this uncertainty. However, it’s important to note that AI tokens are still doing better than they were in July when the total market cap was around $20 billion. Despite this recent $5 billion loss, the AI and big data token market has gained over $13 billion in the past three months. So while the current drop is unsettling, it doesn’t erase the significant progress made in recent months.
Looking forward, while the long-term outlook for Bitcoin and the broader crypto market in late 2024 and early 2025 remains positive, there could still be short-term volatility, especially throughout October. Investors are watching closely, hoping that the market can recover before year-end.
Also Read : Is Bitcoin Going Towards $53,000 ?
