AI Token Daily Losses Exceed Average Market Decline After DOJ Subpoenas Nvidia

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Nvidia was subpoenaed by the US Department of Justice (DOJ) on September 3 as the chip maker is being investigated for possible antitrust violations. As a result, Nvidia shares are already down 8.3% on the week, and artificial intelligence (AI) tokens are falling more than average.

While major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) fell by 4.3% and 4.4% respectively in the last 24 hours, AI-related tokens fell by an average of 7.1% in this period. This is one of the worst daily performances of a crypto category, according to CoinGecko’s DATA. In the weekly time frame, their average draw is 13.7%.

Bittensor Tokens (TAO) and Artificial Superintelligence Alliance (ASI) were the worst daily performers among AI tokens, with over $1 billion in market cap each down 7.8%.

Meanwhile, Near Protocol (NEAR), Render (RENDER), and Internet Computer (ICP) followed the overall crypto market decline, falling 4.6%, 5.2%, and 3.7%, respectively, over the past 24 hours.

Notably, the AI ​​blockchain agent category performed even worse, falling an average of 11.1% intraday. AI agents, as the name suggests, are parts of blockchain infrastructures that are autonomous and can act as traders, miners, validators or arbitrators.

AI agent tokens such as Phala (PHA) and Oraichain (ORAI) have fallen by 4.7% and 5.3% in the last 24 hours.

Why is the market falling?

The crypto market has shown choppy sideways trading since at least March, when Bitcoin recently hit an all-time high in the $73,700 price zone. Thus, the recent drop in prices is an expected move.

That highlighted by the trader known as Rekt Capital, BTC is trading in a price channel on the weekly time frame and could turn the $58,000 price level into resistance if it fails to close the week above $58,300.

In addition, more downsides can be expected in September, as Crypto Briefing reported. Bitfinex analysts predict a possible pullback to the $45,500 price level this month following the Fed’s interest rate cuts. However, this price target is based on the evolution of some macroeconomic metrics, so it is not an arbitrary number.

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