According to a recent report by Barchart, the stock of chip manufacturing behemoth Nvidia (NVDA) is signaling a significant bearish trend. The last instance of this pattern resulted in a near 50% retraction. This development could potentially impact the AI cryptocurrency market, which has occasionally shown sensitivity towards Nvidia’s stock price behavior.
“For the first time since April 2022, NVDA has entered into a Death Cross. The previous occurrence witnessed a 47% stock plunge over the subsequent six months,” Barchart reported on March 23rd. A death cross implies a bearish market situation where an asset’s 50-day simple moving average (SMA) drops below the 200-day SMA.
Despite Nvidia’s bearish signal prior to the close of trading week on March 21, some AI cryptocurrency tokens have seen growth. CoinMarketCap data reveals that Render (RENDER), Bittensor (TAO), and Artificial Superintelligence Alliance (FET) have risen by 4.06% and approximately 2.88% respectively.
Nvidia has been under the microscope for AI cryptocurrency investors. While some analysts have correlated AI crypto token rises with NVDA’s performance — such as its nearly 70% rally prior to Nvidia’s Q2 2024 earnings — there have also been instances where no evident correlation exists.
Post an 18% revenue surge from Q4 2023 in Q1 2024, Nvidia’s performance disappointed some AI token traders as it didn’t trigger a parallel move in AI cryptocurrency token prices. CryptoCosta, a cryptocurrency trader, remarked on a March 22 post, “The AI hype has evidently fizzled out, and now only those AI tokens with genuine utility and revenue generation potential will prosper.”
Over the last month alone, the market capitalization of top AI and big data crypto tokens has depreciated by 23.70%. Near Protocol (NEAR), the leading token in this sector by market cap, has seen nearly a 59% retracement over the last year, currently trading at $2.70.
However, a recent CoinGecko survey of 2,632 participants between February and March revealed that nearly half of the respondents are optimistic about the future of crypto AI tokens. 25% expressed full bullishness, while 19.3% indicated a somewhat bullish stance for crypto AI tokens in 2025. About 29% were neutral, and 26.3% were somewhat bearish or bearish.
Changpeng “CZ” Zhao, former CEO of Binance, recently stated, “Crypto is indeed the money of AI, but not every agent needs its token. Agents can charge fees in existing cryptocurrencies for services. Launch a coin only if you have scale. The focus should be on utility, not tokens.” In February, Sygnum remarked in an investment report that while AI agents have seen significant traction, they have “found it challenging to prove their value beyond speculation.”
