{"id":10122,"date":"2025-03-23T09:08:58","date_gmt":"2025-03-23T08:08:58","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=10122"},"modified":"2025-03-23T09:08:58","modified_gmt":"2025-03-23T08:08:58","slug":"the-implications-of-nvidias-death-cross-on-ai-crypto-tokens-a-forecasting-perspective","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/03\/23\/the-implications-of-nvidias-death-cross-on-ai-crypto-tokens-a-forecasting-perspective\/","title":{"rendered":"The Implications of Nvidia’s ‘Death Cross’ on AI Crypto Tokens: A Forecasting Perspective"},"content":{"rendered":"

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Chip-manufacturing titan Nvidia\u2019s (NVDA) shares are displaying a significant bearish indication \u2014 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\u2019s valuation.<\/p>\n

\u201cNVDA 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,\u201d market data provider Barchart reported<\/a> in a March 23 X update. A death cross<\/a> signifies a bearish trend when the 50-day simple moving average (SMA) of an asset\u2019s value drops below the 200-day SMA.<\/p>\n

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Source: <\/em>Barchart<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

While Nvidia\u2019s 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<\/a>) has surged 4.06%, whereas Bittensor (TAO<\/a>) and Artificial Superintelligence Alliance (FET<\/a>) have both advanced about 2.88%, according<\/a> to data from CoinMarketCap.<\/p>\n

Nvidia has become closely monitored among AI crypto investors lately. While some crypto analysts have associated surges in AI tokens to NVDA\u2019s performance \u2014 as reflected in its nearly 70% rise leading up to Nvidia\u2019s Q2 earnings in 2024<\/a> \u2014 there have also been periods when no discernible connection was evident.<\/p>\n

After Nvidia\u2019s Q1 2024 revenue climbed 18% from Q4 2023<\/a>, some AI token traders appeared disheartened that the robust results did not trigger a similar shift in AI crypto token valuations.<\/p>\n

\"Cryptocurrencies,
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Nvidia\u2019s share price has decreased 9.66% over the last month. Source: <\/em>Google Finance<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Recently, some crypto traders proposed that the bubble has burst and that only AI tokens possessing genuine utility will flourish. Crypto trader CryptoCosta stated<\/a> in a March 22 X post, \u201cThe entire AI enthusiasm has already subsided; it\u2019s now time for those providing market solutions and generating revenue.\u201d<\/p>\n

In just the past month, the total market capitalization for the leading AI and big data cryptocurrency tokens has decreased by 23.70%.<\/p>\n

The most significant token in this domain by market capitalization, Near Protocol (NEAR<\/a>), has declined almost 59% over the preceding 12 months, now valued at $2.70.<\/p>\n

\"Cryptocurrencies\"
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NEAR is priced at $2.70 at the time of publication. Source: <\/em>CoinMarketCap<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Nevertheless, in a recent poll, almost half of cryptocurrency experts expressed that they are optimistic about crypto AI token valuations<\/a>.<\/p>\n

Of the 2,632 individuals surveyed<\/a> by CoinGecko between February and March, 25% were \u201cfully optimistic,\u201d and 19.3% indicated they were \u201csomewhat optimistic\u201d regarding AI cryptocurrency tokens in 2025.<\/p>\n

Related: <\/strong><\/em>AI and crypto enhance criminal efficiency: Europol<\/strong><\/em><\/a><\/p>\n

Approximately 29% of participants remained neutral on the matter, while a total of 26.3% were either somewhat pessimistic or pessimistic.<\/p>\n

Concurrently, former Binance CEO Changpeng \u201cCZ\u201d Zhao recently asserted<\/a>, \u201cAlthough crypto is the currency for AI, not every agent requires its own token.\u201d<\/p>\n

\u201cAgents can accept fees in an existing crypto for offering a service. Initiate a coin only if you have significant scale. Prioritize utility, not tokens,\u201d he stated.<\/p>\n

In February, Sygnum reported in an investment analysis<\/a>, indicating that while AI agents have gained \u201csignificant traction,\u201d they have \u201cstruggled to demonstrate their value beyond mere speculation.\u201d<\/p>\n

Magazine:<\/strong><\/em> What are native rollups? Complete guide to Ethereum\u2019s latest advancement<\/strong><\/em><\/a><\/p>\n