Home Macro Trends AI Tokens Lag Despite Strong Tech Earnings as Fed Signals Weigh on Crypto Markets
Macro Trends

AI Tokens Lag Despite Strong Tech Earnings as Fed Signals Weigh on Crypto Markets

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AI Tokens Lag Despite Strong Tech Earnings as Fed Signals Weigh on Crypto Markets
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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.

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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Written by
Logan Pierce

Logan Pierce is a U.S.-based crypto researcher and Web3 strategist with deep expertise in AI tools for crypto, Layer 2 scaling, DeFi, and on-chain analytics. With a background in software development and macro trend analysis, he breaks down complex blockchain topics into actionable insights. Logan regularly covers tokenomics, security, airdrops, and emerging technologies like zk tech, helping both beginners and advanced users navigate the evolving crypto landscape.

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