Nvidia’s stock is signaling a significant bearish trend, having formed a pattern that previously led to a nearly 50% decline. This development could raise concerns for the AI crypto sector, which has occasionally mirrored Nvidia’s stock movements.
“Nvidia has just experienced a Death Cross for the first time since April 2022. The last occurrence resulted in a 47% drop in shares over the next six months,” noted a market data platform in a post. A death cross is a negative indicator occurring when an asset’s 50-day simple moving average (SMA) dips below its 200-day SMA.
Source: Barchart
While Nvidia’s stock exhibited this bearish trend before the trading week wrapped up on March 21, several AI crypto tokens have gained traction since then. Render (RENDER) has risen by 4.06%, and both Bittensor (TAO) and Artificial Superintelligence Alliance (FET) have increased about 2.88%, according to data from CoinMarketCap.
Nvidia has drawn considerable attention from AI crypto traders lately. Some analysts have connected the surges in AI crypto tokens to Nvidia’s performance — such as its nearly 70% increase ahead of the company’s Q2 earnings report for 2024 — though there have been instances where a clear correlation was not observed.
After Nvidia reported an 18% revenue increase in Q1 2024 compared to Q4 2023, some traders of AI tokens expressed disappointment that these strong financial results did not result in a similar uptick in AI crypto token values.
Nvidia’s stock price has decreased 9.66% in the past month. Source: Google Finance
Recently, some traders have suggested that the bubble may have burst, stating that only AI tokens with substantial utility will succeed. One crypto trader commented on March 22, “The entire AI hype has already faded; it’s now time for those who offer market solutions and generate revenue.”
Over the past month, the market capitalization of leading AI and big data crypto tokens has dropped by 23.70%.
The largest token in this sector by market capitalization, Near Protocol (NEAR), has seen a decline of almost 59% in the last year, currently trading at $2.70.
NEAR is traded at $2.70 at the time of this report. Source: CoinMarketCap
However, a recent survey revealed that nearly half of crypto enthusiasts remain optimistic about the future prices of AI tokens.
Of 2,632 participants surveyed between February and March, 25% were “fully bullish,” while 19.3% reported being “somewhat bullish” regarding AI tokens in 2025.
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Approximately 29% of respondents felt neutral on the topic, while a total of 26.3% were either somewhat bearish or outright bearish.
Meanwhile, former Binance CEO Changpeng “CZ” Zhao remarked, “While crypto serves as the currency for AI, not every agent requires its own token.”
“Agents can charge fees in an established cryptocurrency for their services. Only launch a new coin if substantial scale is achieved. Focus on utility, not merely on tokens,” he advised.
An investment report from Sygnum stated that while AI agents have gained significant traction, they have “struggled to demonstrate their value beyond speculation.”
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