Chip-manufacturing titan Nvidia’s (NVDA) shares are displaying a significant bearish indication — the last occurrence of this pattern resulted in a nearly 50% decline. This could spark concerns for the AI cryptocurrency industry, which has occasionally appeared to respond to Nvidia’s valuation.
“NVDA just established a Death Cross for the first time since April 2022. The previous instance caused shares to tumble 47% over the following six months,” market data provider Barchart reported in a March 23 X update. A death cross signifies a bearish trend when the 50-day simple moving average (SMA) of an asset’s value drops below the 200-day SMA.
Source: Barchart
While Nvidia’s stock exhibited the bearish signal prior to the trading week concluding on March 21, several crypto AI tokens have seen increases since that moment. Render (RENDER) has surged 4.06%, whereas Bittensor (TAO) and Artificial Superintelligence Alliance (FET) have both advanced about 2.88%, according to data from CoinMarketCap.
Nvidia has become closely monitored among AI crypto investors lately. While some crypto analysts have associated surges in AI tokens to NVDA’s performance — as reflected in its nearly 70% rise leading up to Nvidia’s Q2 earnings in 2024 — there have also been periods when no discernible connection was evident.
After Nvidia’s Q1 2024 revenue climbed 18% from Q4 2023, some AI token traders appeared disheartened that the robust results did not trigger a similar shift in AI crypto token valuations.
Nvidia’s share price has decreased 9.66% over the last month. Source: Google Finance
Recently, some crypto traders proposed that the bubble has burst and that only AI tokens possessing genuine utility will flourish. Crypto trader CryptoCosta stated in a March 22 X post, “The entire AI enthusiasm has already subsided; it’s now time for those providing market solutions and generating revenue.”
In just the past month, the total market capitalization for the leading AI and big data cryptocurrency tokens has decreased by 23.70%.
The most significant token in this domain by market capitalization, Near Protocol (NEAR), has declined almost 59% over the preceding 12 months, now valued at $2.70.
NEAR is priced at $2.70 at the time of publication. Source: CoinMarketCap
Nevertheless, in a recent poll, almost half of cryptocurrency experts expressed that they are optimistic about crypto AI token valuations.
Of the 2,632 individuals surveyed by CoinGecko between February and March, 25% were “fully optimistic,” and 19.3% indicated they were “somewhat optimistic” regarding AI cryptocurrency tokens in 2025.
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Approximately 29% of participants remained neutral on the matter, while a total of 26.3% were either somewhat pessimistic or pessimistic.
Concurrently, former Binance CEO Changpeng “CZ” Zhao recently asserted, “Although crypto is the currency for AI, not every agent requires its own token.”
“Agents can accept fees in an existing crypto for offering a service. Initiate a coin only if you have significant scale. Prioritize utility, not tokens,” he stated.
In February, Sygnum reported in an investment analysis, indicating that while AI agents have gained “significant traction,” they have “struggled to demonstrate their value beyond mere speculation.”
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