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AI-Related Cryptos Lead Altcoin Surge; Bitcoin Breakout Nears with Several Catalyst in Q4: Analyst

Sep 23, 2024

As a seasoned researcher with a decade-long journey in the ever-evolving world of cryptocurrencies and artificial intelligence, I find myself intrigued by the latest rally led by AI-related cryptocurrencies. It’s fascinating to see how these innovative projects are gaining traction, outperforming even the titans like Bitcoin and Ethereum.

On Monday, digital currencies linked to artificial intelligence technology took the lead during the crypto market surge. Meanwhile, alternative coins, or altcoins, outperformed Bitcoin (BTC) in their overall performance.

Over the past 24 hours, the native tokens of layer-1 blockchain Near (NEAR) and decentralized computing platform Render (RNDR) saw a significant increase of approximately 18%-20%. Among the broader market, as represented by the CoinDesk 20 Index, these were the most swift performers, with a growth of 1.5% within the same timeframe.
During the same timeframe, Bittensor (TAO) increased by 17%, and Livepeer (LPT) continued to rise. This surge came after Barry Silbert, CEO of Digital Currency Group (DCG), highlighted LPT as a “hidden gem in crypto AI” on Reddit. The token is part of the Grayscale Decentralized Artificial Intelligence Fund, managed by DCG’s asset management arm.
In simple terms, Bitcoin struggled to advance, barely increasing by less than 1%, as it tried to regain its significant 200-day moving average of around $64,000. Conversely, Ethereum’s ether (ETH) demonstrated resilience, recording a gain of approximately 3.5%.
AI-Related Cryptos Lead Altcoin Surge; Bitcoin Breakout Nears with Several Catalyst in Q4: Analyst
One of the top performers in the market was Celestia’s native token (TIA), which surged by 12% on Monday following news about its ecosystem development organization, the Celestia Foundation, securing a $100 million investment led by Bain Capital Crypto. This upward trend might have been boosted by Democratic nominee Kamala Harris expressing her support for technology at a fundraising event, stating that she aims to be a president who fosters advancements in technology, particularly innovative areas like artificial intelligence and digital assets.

Looking at conventional marketplaces, gold reached unprecedented highs in price, while stocks also climbed further, building upon their growth following the Federal Reserve’s decision to lower interest rates by 0.5% on Wednesday.

Chicago Fed President Austan Goolsbee indicated that it seems probable there will be additional rate cuts over the next year, as he stated on Monday: “Over the course of the next twelve months, we have a significant distance to travel before reaching a ‘neutral’ interest rate.” The Fed’s economic forecast places the neutral rate around 3%.

Bitcoin could hit new record prices in Q4

2019 saw a decrease in bitcoin’s price following interest rate cuts, but if these cuts occur due to inflation approaching 2% rather than economic instability, as suggested by Markus Thielen, founder of 10x Research, it could be a positive sign, according to an interview with CoinDesk Markets Daily on Monday.

In the final part of the year, analyst Thielen forecasted that Bitcoin would reach unprecedented peaks again, following a six-month period of relative stability, based on various factors he identified as potential triggers for this upward trend.

The timeframe between October and March has traditionally been Bitcoin’s peak season, accounting for a significant portion of its annual growth.

As a crypto investor, I’ve been closely following the developments at FTX and I’m hopeful that in the coming months, a significant portion of their $16 billion in assets might be redistributed to creditors. It’s possible that some of these funds could potentially find their way back into the crypto market.

Last week, the SEC gave its approval for BlackRock’s Bitcoin ETF (IBIT) to be listed. This is a significant step forward that opens up possibilities for creating additional financial tools related to this ETF, potentially increasing the availability of institutional-level liquidity in the dominant cryptocurrency market.

Despite some crypto investors expressing concern over the uncertainty surrounding the upcoming U.S. presidential vote in November, Thielen stated that the election outcome may not have a significant impact on Bitcoin (BTC), as government spending and budget deficits are likely to persist, which could potentially favor BTC.

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2024-09-24 00:25