The category of blockchain AI agents has witnessed a significant average intraday decline of 11.1%, exacerbated by the broader market downturn.
On September 3, Nvidia found itself under scrutiny as the US Department of Justice (DOJ) issued a subpoena to investigate potential antitrust law violations by the chipmaking giant. This development has already impacted Nvidia’s market performance, with shares plummeting by 8.3% over the week. Consequently, artificial intelligence (AI) tokens have experienced a sharper decline compared to the broader market.
In the past 24 hours, prominent cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) have seen their values decrease by 4.3% and 4.4%, respectively. However, AI-related tokens have suffered more severe losses, averaging a 7.1% drop during the same period. According to CoinGecko’s data, this marks one of the most dismal daily performances for any crypto category. On a weekly basis, AI tokens have experienced an average drawdown of 13.7%.
Among AI tokens with a market cap exceeding $1 billion, Bittensor (TAO) and Artificial Superintelligence Alliance (ASI) have endured the steepest declines, each falling by 7.8% in a single day.
Elsewhere in the crypto market, Near Protocol (NEAR), Render (RENDER), and Internet Computer (ICP) have also followed the broader downturn, with their values dropping by 4.6%, 5.2%, and 3.7%, respectively, over the past 24 hours.
The category of blockchain AI agents has been hit even harder, averaging an 11.1% drop in intraday trading. These AI agents are integral components of blockchain infrastructure, functioning autonomously as traders, miners, validators, or arbitrageurs.
Tokens associated with AI agents, such as Phala (PHA) and Oraichain (ORAI), have also seen significant declines, losing 4.7% and 5.3%, respectively, in the last 24 hours.
The crypto market has exhibited choppy sideways trading since March when Bitcoin reached its recent all-time high near $73,700. Therefore, the recent downturn in prices aligns with expected market behavior.
Notable trader Rekt Capital has pointed out that BTC is currently trading within a defined price channel on the weekly timeframe. Should it fail to close the week above $58,300, it risks turning the $58,000 price level into resistance.
Furthermore, Crypto Briefing has reported that more downside movement could be anticipated in September. Analysts from Bitfinex predict a potential retracement to the $45,500 price level this month, influenced by recent rate cuts by the Federal Reserve. This forecast is based on evolving macroeconomic metrics and is not an arbitrary figure.
In summary, the blockchain AI agents category has suffered notable losses amidst a broader market decline, compounded by Nvidia’s legal troubles and a general downturn in major cryptocurrencies like Bitcoin and Ethereum. The market continues to face uncertainty, with potential further declines anticipated based on current economic trends and regulatory developments.