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AI Tokens Lead Crypto Market Ahead of Nvidia Earnings, Bitcoin Under $64K

Aug 25, 2024
    Major cryptocurrencies like Ether, Solana, and XRP showed slight losses over the past 24 hours, despite a general uptick over the weekend.AI-related tokens like Artificial Superintelligence Alliance’s FET and Bittensor’s TAO led the market gains, rising 8.8% and 4.7% respectively, ahead of Nvidia’s anticipated earnings report.The broader market, represented by the CoinDesk 20, remained flat, with expectations of continued market improvement due to potential rate cuts and economic stabilization.
As a seasoned crypto investor with a knack for spotting trends and a keen eye for potential, I find myself intrigued by the current market dynamics. The slight losses major cryptocurrencies like Ether, Solana, and XRP over the past 24 hours are a temporary setback in an otherwise promising uptick we’ve seen over the weekend. However, it’s the AI-related tokens that have caught my attention – FET and TAO leading the market gains.During Asian trading hours on Monday, the value of Bitcoin (BTC) dipped below $64,000, a drop that followed a 5% increase on Friday, triggered by positive remarks about it at the Jackson Hole event.

In simpler terms, Jerome Powell, the chairman of the U.S. Federal Reserve, announced on Friday that they plan to start a period of making money cheaper starting next month. This should help reduce obstacles for investments and boost asset prices, as the allure of affordable funds will attract more investors.

As a crypto investor, I observed a surge in major tokens over the weekend, but there’s been a slight dip in the last 24 hours. Ether (ETH) stood at around $2,700 during trading, while Solana’s SOL and XRP were being exchanged at approximately $158 and 58 cents each. Interestingly, Tron’s TRX saw a 3% increase, continuing the trend driven by the memecoin craze that seems to be boosting its demand.

The broad-based CoinDesk 20 (CD20), a liquid index of the largest tokens by market capitalization, was lower by 0.44%.

Traders said they expect the current rally to continue in the next few months.

With inflation mostly tamed, attention is likely to switch towards the job market and whether the Fed can manage a gentle economic transition for the US, according to Lucy Hu, senior analyst at Metalpha. She predicts that market confidence will strengthen over the coming months as interest rates decrease and the economy becomes more stable, potentially boosted by pro-crypto policies if Donald Trump wins the election.

AI tokens charge ahead of Nvidia earnings

On Monday, Artificial Intelligence-related tokens took the lead, with investors in Asia showing interest and investing in FET, the token associated with ‘Artificial Superintelligence Alliance’, as well as Bittensor (TAO). This shift towards AI tokens is in anticipation of Nvidia’s (NVDA) upcoming earnings report due on August 28.
FET is up 8.8% as of early afternoon Hong Kong time while (TAO) is up 4.7%.

Historically, Nvidia has served as a leading indicator for the expanding AI market, with tokens tending to rise in advance of its financial reports.

According to a survey by FactSet, analysts anticipate that this quarter’s earnings per share will be a significant milestone, potentially reaching 65 cents each – representing an impressive 141% jump compared to the same period last year. Moreover, they forecast the revenue to surge, possibly hitting $28.72 billion, which is a substantial 113% growth from the previous year.

For the upcoming quarter, Nvidia is projected to experience its fifth straight period of over 100% growth, as the technology industry is anticipated to continue thriving for the remainder of the year. This optimistic outlook is largely due to speculation that the Federal Reserve will lower interest rates in September.

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2024-08-26 10:50