Market commentary
Since the approval of the first spot-based Bitcoin ETFs, the crypto markets have received a significant tailwind from inflows into the new funds. In six weeks, the ETFs have attracted nearly $5 billion, despite significant redemptions in the Grayscale Bitcoin Trust (GBTC). In the last week alone, two billion USD were added.
Bitcoin BTC/USD (daily) / Charts: TradingView
The buying pressure on the largest cryptocurrency by market cap is also reflected in its price action. Over the past two weeks, Bitcoin (BTC) has risen +20%. The "sell the news" wave that occurred shortly after the approval of the ETFs was quickly absorbed by new entrants. Currently, the cryptocurrency is at its highest level since 2021.
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Crypto and AI: The Next Narrative?
A large portion of alternative digital assets ("altcoins") cannot keep up with the price performance of Bitcoin. Since the beginning of the year (year-to-date, YTD), Bitcoin has gained +22.95%. The total market capitalization of all cryptocurrencies rose "only" +19.98%. However, certain sectors have outperformed Bitcoin. For example, assets related to artificial intelligence (AI) stormed the room.
Bittensor TAO/USDT (daily) / Charts: TradingView
The Bittensor AI infrastructure project is currently leading the way. The protocol aims to create a decentralized marketplace for AI applications. Since the beginning of the year, the price of the native token "TAO" has clearly favored the project with +208.23%. With a market capitalization of $4.25 billion, the cryptocurrency ranks 25th despite having fewer listings on major centralized exchanges. Other digital assets such as Render (RNDR), Fetch.ai (FET) and Akash (AKT) are also benefiting from the AI narrative.
Worldcoin WLD/USDT (daily) / Charts: TradingView
Indirectly, the wave has swept traders towards Worldcoin, as can be seen by the price action of the WLD token. The highly controversial project was launched in 2020 under the leadership of OpenAI founder and CEO Sam Altman. Users will be asked to prove their "humanity" in an anonymous online world by scanning their eyeballs. Participants will be rewarded with Worldcoin tokens. The project is not directly related to artificial intelligence. However, a multi-billion dollar funding round sought by Altman for the production of its own computer chips, which are urgently needed for the operation of AI protocols, made headlines.
Disclaimer
All information in this publication is provided for general information purposes only. The information provided in this publication does not constitute investment advice and is not intended as such. This publication does not constitute and is not intended as an offer, recommendation or solicitation to invest in any financial instrument, including cryptocurrencies and the like. The contents contained in the publication represent the personal opinions of the respective authors and are not suitable or intended as a basis for decision-making.
Risk notice
Investing in cryptocurrencies, is fundamentally associated with risk. The total loss of the invested capital cannot be excluded. Cryptocurrencies are very volatile and can therefore be exposed to extreme price fluctuations in a short period of time.
