AI Coins Lose $4.7 Billion in October, More Decline Expected?

Coinspeaker
AI Coins Experience $4.7 Billion Decline since Beginning of October, Is More Pain on the Horizon?

Despite hopes for a bullish October, the broader cryptocurrency market has unexpectedly dipped, with artificial intelligence (AI) and big-data tokens suffering a loss of $4.7 billion in just three days.

The market capitalization of AI coins, initially valued at $38.82 billion on September 30, has fallen to $34.13 billion by October 3. This decline comes as Bitcoin and various altcoins undergo a significant drop, driven by a shift in market sentiment to bearish amidst the intensifying Israel-Iran conflict. This unexpected change has dashed the optimistic outlook for “Uptober” that many anticipated. Some analysts have humorously pointed out that October is shaping up to be a “Rektober,” deviating sharply from earlier expectations.

Among the artificial intelligence (AI) and big data tokens, Near Protocol

NEAR
$4.52



24h volatility:
4.8%


Market cap:
$5.00 B



Vol. 24h:
$466.87 M

has registered the most substantial decline, witnessing a 15% drop on the weekly chart. At the time of this report, the NEAR price has decreased by 5.19%, now sitting at $4.56.

Other notable tokens, like Bittensor

TAO
$496.7



24h volatility:
6.0%


Market cap:
$3.66 B



Vol. 24h:
$246.59 M

and Internet Computer

ICP
$7.88



24h volatility:
3.0%


Market cap:
$3.70 B



Vol. 24h:
$163.63 M

have also experienced significant price drops of 9.3% and 13.35%, respectively. This trend has negatively impacted the broader AI and big data market, with tokens such as Render (RNDR) decreasing by 13.64% to $6.25, and Artificial Superintelligence Alliance

FET
$1.37



24h volatility:
5.8%


Market cap:
$3.56 B



Vol. 24h:
$453.97 M

witnessing a decline of 16.68% to $1.38.

Is Uptober Turning into Rektober?

Traditionally, October has been a month of significant gains and stability in the market, with many looking forward to upward momentum for Bitcoin

BTC
$60 546



24h volatility:
0.3%


Market cap:
$1.19 T



Vol. 24h:
$43.22 B

and altcoins. However, 2024 has deviated from this pattern, with almost $5 billion wiped from the AI and big data token market cap during the first three days of the month.

The larger cryptocurrency market has also faced challenges, influenced by geopolitical strains, including conflicts in the Middle East, regulatory hurdles, and economic uncertainties. Furthermore, the $140 billion liquidity infusion by the People’s Bank of China has not ignited a significant crypto surge, unlike the 20% short-squeeze observed in the Chinese stock market.

On a positive note, despite the ongoing downturn, AI coins are still performing better than in July when the sector’s market cap hovered around $20 billion. Even after the recent drops, it remains 70% higher than two months ago. During August and September, AI and big data tokens added a cumulative $13 billion to the market cap.

All eyes are now on the Bitcoin price trajectory and its potential movements moving forward. There is considerable optimism that BTC could reach $100K levels in Q4 this year. If this occurs, it could boost altcoins significantly, particularly sectors like AI and meme coins, potentially maximizing the profits from the rally.

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AI Coins Experience $4.7 Billion Decline since Beginning of October, Is More Pain on the Horizon?