The cryptocurrency market, particularly focusing on artificial intelligence (AI) and big data-related tokens, has experienced a sharp decline in early October 2024. Over just the first three days, in October, the combined market capitalization of these tokens fell by a staggering $4.69 billion, plummeting from $38.82 billion to $34.13 billion.
This sudden drop has raised concerns about the “UPtober” trend, a term used by traders to describe October’s usually strong market performance.
Major AI Tokens Hit Hard
Several key AI and big data tokens have taken the brunt of this downturn:
- Near Protocol (NEAR) suffered the steepest decline, losing 14.88% of its value over the past seven days. As of the latest data, NEAR was priced at $4.61.
- Bitensor (TAO), another prominent token, dropped by 9.37%, bringing its price to $492.62.
- Internet Computer (ICP) also experienced a significant dip, losing 13.35% over the same period, now trading at $7.89.
- Render (RNDR) followed closely, shedding 13.64% and contributing to the overall market decline.
The sharp decline has surprised many investors who were hopeful for a positive October performance. Historically, October has been a strong month for cryptocurrencies, earning the moniker “UPtober” due to frequent market uptrends during this period.
However, this year, October is shaping up to be more bearish than expected, with the sudden loss in market cap signaling volatility ahead. Analysts now dub this month “Octo-bear” rather than the optimistic “UPtober.”
The downturn in AI and big data tokens is driven by external factors like geopolitical tensions in the Middle East, increasing regulatory scrutiny on crypto and AI markets, and macroeconomic challenges such as inflation and interest rates, all adding to market volatility.
Despite the latest decline, AI and big data tokens are still much better placed than early this year. In July 2024, the market capitalization of these tokens was over $20 billion. Fast forward three months, and despite the $4.69 billion loss, the market is still up more than $13 billion from its summer lows.
This viewpoint implies that, while short-term volatility is influencing the market, the long-term trend remains more optimistic. Investors, particularly those focused on Bitcoin (BTC) and other top cryptocurrencies, are bullish about the fourth quarter of 2024 and early 2025.
Despite the recent downturn, the AI and big data token sector is expected to remain volatile through October. Investors are watching closely to see if Bitcoin and altcoins will recover or face further declines. Given past market patterns, many are optimistic that this dip may be short-lived, with hopes for a stronger performance in Q4.
Also Read: AI Tokens Surge Ahead of Nvidia’s Q2 Earnings Report
