AI Tokens Rally Amid Crypto Market Lull

Crypto markets dipped slightly on Monday morning, giving back some of the gains posted over the weekend.

Bitcoin (BTC) fell by 1% to $63,400, while Ethereum (ETH) dropped by 1.5%. Polkadot (DOT) plunged nearly 5% and Solana (SOL) dipped 1%.

However, AI-related tokens stood out amidst this general decline.

Artificial Superintelligence Alliance (FET) surged by 10%, and Bittensor (TAO) spiked 5% ahead of tech giant Nvidia’s earnings report scheduled to be released on Wednesday.

Nvidia is generally considered a leading indicator for the emerging AI crypto sector. According to LSEG data, Nvidia is expected to report a 112% year-over-year increase in second-quarter revenue to $28.7 billion.

Meanwhile, over 34,110 traders were liquidated in the past 24 hours, resulting in total liquidations amounting to $72 million, per CoinGlass data.

The market action follows an eventful Friday, when markets rallied after Federal Reserve Chairman Jerome Powell’s speech at the Fed’s annual gathering in Jackson Hole, Wyoming.

Powell hinted at imminent interest rate cuts, saying, “The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”

Bitcoin ETFs Record Surge in Inflows

On Friday, U.S. spot Bitcoin exchange-traded funds (ETFs) recorded $252 million in daily net inflows, the highest since July 22, when they brought in $485 million, according to Farside Investors data.

BlackRock’s iShares Bitcoin Trust ETF (IBIT) led with $86 million in inflows, followed by Fidelity’s FBTC at $64 million and the Bitwise Bitcoin ETF (BITB) with $42 million. Grayscale’s GBTC experienced net outflows of $35 million.

In contrast, spot Ethereum ETFs had another weak showing, with $5.7 million in outflows on Friday. Throughout last week, ETH ETFs consistently recorded outflows, amounting to $44.5 million.

U.S. stock markets also dropped on Monday. The S&P 500 dipped 0.25%, while the tech-heavy Nasdaq fell nearly 1%.