The AI token sector previously benefited from Nvidia’s record-breaking 2024 rally, which helped push the category’s market capitalization above $10 billion. However, bitcoin’s rising dominance in early 2025 has drained interest from altcoins, including AI tokens, causing the category’s market cap to fall below $5 billion.
Don’t you usually sell into crazy earnings idk 🤷🏽♂️ seems crazy how long this infrastructure build out for tech is taking.. it’s literally been three years and current ai automation is at like 15min before accuracy seems to fade. How many dam gpu’s they need
— ThePupil (@TheSkinny16) July 30, 2025
Market participants pointed to Federal Reserve messaging as a primary factor dampening risk appetite across crypto markets. Fed Chair Jerome Powell’s recent remarks about tariff-driven inflation potentially just beginning added uncertainty that weighed on risk assets broadly.
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