- Artificial Intelligence tokens experienced major declines fueled by Nvidia's massive stock loss.
- Nvidia received a subpoena from the Department of Justice (DOJ) for an antitrust investigation.
- TAO, ASI and RENDER experienced the highest declines in the past 24 hours.
Artificial Intelligence (AI) based cryptocurrencies declined in the Asian trading session on Wednesday, following reports of Nvidia (NVDA) wiping out $280 billion from its market capitalization. The downturn may be attributed to a subpoena issued to the chip manufacturing giant Nvidia from the US Department of Justice (DoJ).
AI tokens decline as NVDA could drop further on looming antitrust case
The general AI crypto sector witnessed harsh declines on Wednesday, taking a 10% dive and a $280 billion market cap exodus in Nvidia's stocks.
The sharp decline in NVDA may be attributed to the DoJ's subpoena to Nvidia regarding an antitrust investigation. The AI chip manufacturer joined the list of companies under the US government's watch list, as the investigation may be a major scare for investors.
An antitrust investigation is any investigation carried out by a governmental authority to enforce antitrust laws. The government puts these laws in place to regulate the conduct of organizations and prevent unjustified monopolies.
Several AI tokens gained on Monday following partnership deals and a general market recovery. However, the token category's close relationship with NVDA has sparked losses within the sector.
According to a post by The Kobeissi Letter on X, the DoJ is searching for evidence against Nvidia and several other AI chip manufacturers. With Nvidia currently controlling approximately 90% of the general AI market, this could negatively impact the AI crypto market.
The news of a subpoena could spread FUD and lead to further price declines of tokens within the sector. For example, several major AI tokens have begun to experience declines in the past few hours.
Bittensor (TAO), Artificial Superintelligence Alliance (FET) and Render (RENDER) were among the most heavily affected, with declines of 12%, 9% and 7%, respectively. Furthermore, Near Protocol (NEAR), The Graph (GRT) and Akash Network (AKT) are also down nearly 9% on the day.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.