- NVIDIA’s fourth-quarter earnings beat market expectations, lending support to the AI narrative in crypto.
- Top AI crypto assets such as Render, Akash Network, Bittensor, Fetch.AI and SingularityNET rallied after the earnings release.
- Most AI tokens have pared their recent gains on Thursday.
Market participants had their eyes peeled for the fourth-quarter earnings report of Nvidia (NVDA) on Wednesday. The chip-maker earnings beat led to an initial rally for AI-related tokens, but the uncertainty surrounding Bitcoin (BTC) price has limited these gains on Thursday amid very volatile trading conditions for these tokens.
AI tokens Render (RNDR), Akash Network (AKT), Bittensor (TAO), Fetch.AI (FET) and SingularityNET (AGIX) price gains have almost evaporated in the past 24 hours after an initial rally driven by Nvidia’s earnings release.
Also read: Nvidia Stock Earnings: NVDA Q4 results trounce consensus
AI cryptocurrencies look stuck between “sell the news” and “buy the dip”
AI cryptocurrencies have experienced high volatility following the Nvidia earnings report. The leading semiconductor company reported a revenue of $22.1 billion in Q4, a massive jump from $27 billion in revenue for all of 2022.
The NVDA report strengthened the narrative of artificial intelligence (AI) and data coins. The release of OpenAI’s text-to-video generator tool, Sora, had previously triggered an increase in AI crypto prices as well.
Since there was anticipation of an increase in the company’s earnings, market participants seem to have engaged in “sell the news” behavior. As prices of top AI tokens like RNDR, AKT, TAO, FET, and AGIX declined early on Thursday, the “buy the dip” narrative made a comeback and demand among market participants has pushed asset prices higher once again.
RNDR, AKT, TAO, FET and AGIX prices noted a shift in their prices from a decline of 1% to 2% to a spike of nearly 8% in the past 24 hours.
Bitcoin’s indecisive price trend has also influenced the AI price rally. As BTC price trades sideways below the $52,000 level, AI tokens alongside top altcoins have suffered from this lack of direction.
The AI narrative is relevant for the cryptocurrency market. However, it seems that it has reached the point of exhaustion and profits from AI coins are likely rotating into other assets.
Bitcoin price trend could determine what’s next for AI tokens
Bitcoin price is hovering around $52,000 on Thursday, little changed from a day earlier but recovering from a low at $50,700 on Wednesday.. If BTC price increases further, climbing past the $53,000 level and flipping resistance into support, it could rally towards $60,000.
BTC/USDT 1-day chart
However, a rejection at the $53,000 level could usher a decline to the psychologically important level of $50,000. If BTC fails to sustain above $50,000, it could drop back to the $40,000 level. A steep correction in BTC could usher a decline in AI token prices.
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