AI-Related Crypto Tokens Down as Nvidia Stock Tumbles on Wednesday

Coinspeaker
AI-Related Crypto Tokens Down as Nvidia Stock Tumbles on Wednesday

The crypto market continued with a bearish outlook in the past 24 hours as Bitcoin (BTC) price plummeted over 4 percent to tease below $56K since the August 5 crash. The altcoin industry registered significant losses in tandem, thus triggering forced liquidations of leveraged trading positions of nearly $200 million.

As a result, the fear of further crypto Selloff in September remains valid, with Bitcoin’s fear and greed index hovering below 30 percent, which suggests the bears are in control.

Crypto Asset Tumbled in Tandem with Major Stocks

The crypto market was heavily impacted by the notable selloff in the stock industry, which registered over $1 trillion in net losses. The S&P 500 had its third worst-performing day of 2024 in the past 24 hours, after a 2.12 percent decline.

A similar selloff was registered in major stock indexes including the Asia Dow, Japan’s Nikkei 225, the Nasdaq Composite Index, and Dow Jones Industrial Average Index.

The report that the US Department of Justice (DOJ) had issued Nvidia Corp (NASDAQ: NVDA) a subpoena regarding its antitrust investigations. The NVDA stock closed Tuesday trading at $108, down over 9 percent from the day’s opening value, thus resulting in a loss of over $280 billion.

AI Crypto Projects Heavily Impacted

Following the notable losses in semiconductor-related stocks, all the AI-related crypto projects registered a significant downfall in the past 24 hours. According to the latest market data, the total market cap for top AI crypto projects dropped over 7 percent in the past 24 hours to hover about $20 billion.

The top AI crypto projects to register notable losses in the past 24 hours include NEAR Protocol (NEAR), Internet Computer (ICP), Artificial Superintelligence Alliance (FET), Render (RENDER), and Bittensor (TAO).

Bigger Market Picture

The crypto market is expected to continue bleeding in the coming weeks as investors flee the high-risk assets en masse. For instance, both the US spot Bitcoin and Ether ETFs registered net cash outflows in the last few days.

On Tuesday, the US spot Bitcoin ETFs registered a net cash outflow of about $287 million, led by Fidelity’s FBTC. Interestingly, none of the US spot Bitcoin ETFs, even BlackRock’s IBIT, had a net cash inflow on Tuesday. As a result, the US spot Bitcoin ETFs have registered five consecutive days of notable cash outflows.

Meanwhile, the US spot Ether ETFs have continued to register low demand from institutional investors, after reporting a net cash outflow of about $47 million on Tuesday.

In the #Bitcoin 2-month chart, the TD Sequential indicator presented a sell signal anticipating a correction. If the $51,000 support level is lost, $BTC could drop to $40,600! pic.twitter.com/CxVpzfOrzU

— Ali (@ali_charts) September 4, 2024

At the same time, the anticipated Fed’s interest rate cut on September 18 is expected to turn into a sell-the-news event before a general market rebound in the fourth quarter. In this regard, Bitcoin price could drop towards $54K or lower, depending on investors’ sentiment in the near term.

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AI-Related Crypto Tokens Down as Nvidia Stock Tumbles on Wednesday