The AI cryptocurrency token market has had a substantial decline, resulting in the overall market capitalization dropping to $20 billion.
The decrease in sales is a result of a subpoena issued by the US Department of Justice (DOJ) to Nvidia, regarding concerns about potential antitrust violations.
The Department of Justice’s inquiry into Nvidia’s conduct has raised broader apprehensions over the reliability of AI investments, especially those associated with prominent technology firms such as Nvidia.
Nvidia’s shares, which were already experiencing declines, further declined in response to the news of the subpoenas. The overall market value of AI cryptocurrency tokens experienced a decline of 7.6%, indicating widespread apprehension regarding the reliability of AI investments within the ongoing DOJ probe.
Significant declines in value were observed for several prominent cryptocurrencies associated with artificial intelligence, such as NEAR Protocol (NEAR), Internet Computer (ICP), and Injective (INJ). Bittensor (TAO) experienced the most significant impact, with a notable 11% decrease in value following the announcement regarding Nvidia.
The abrupt decline in AI crypto tokens is particularly worrisome given the substantial expansion the field has had in the previous year. Nvidia’s ascent as a frontrunner in AI technology has been a significant catalyst for this expansion. Nevertheless, the AI crypto market, which was once optimistic, now faces uncertainty due to the Department of Justice’s investigation into the tech giant.
Although TAO’s value has experienced a significant decline, there are indications that the token’s downturn may be temporary. The price is now fluctuating within an ascending triangle formation, indicating the possibility of a significant price movement.
Analysts see a potential 43% increase if TAO is able to surpass significant resistance levels. Nevertheless, the realization of this positive outcome relies on the token’s capacity to convert a crucial resistance level into a supportive one.
