Yigit Taha OZTURK 
Chipmaker giant Nvidia (NVDA) has flashed a significant bearish signal known as the “Death Cross” — a pattern that previously led to a nearly 47% decline in its stock price. This raises the question: Will AI-focused crypto tokens follow the same trend?
What Is a Death Cross?
A Death Cross occurs when an asset’s 50-day simple moving average (SMA) drops below its 200-day SMA. Historically, this is seen as a long-term bearish indicator. Nvidia’s stock formed this pattern before the market closed on March 21.
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AI Crypto Tokens Rise Despite Nvidia’s Bearish Signal
Interestingly, several AI-related crypto tokens have posted gains despite Nvidia’s bearish technical indicator:
- Render (RNDR): up 4.06% at $3.34
- Bittensor (TAO): up 2.88% at $254.27
- Artificial Superintelligence Alliance (FET): up 2.88% at $0.5162
Although there have been times when AI tokens surged in tandem with Nvidia’s gains — such as its 70% rally ahead of Q2 2024 earnings — the correlation has not always been consistent.
Has the AI Crypto Hype Bubble Burst?
Some traders believe the AI crypto hype has cooled off, and that only projects with real utility and revenue models will thrive. Crypto trader CryptoCosta remarked, “The AI hype has already died down; now it’s time for those providing market solutions and revenue.”
In the past month, the AI and Big Data crypto sector has seen a 23.70% decline in total market capitalization. Near Protocol (NEAR), the largest token in this category, is down nearly 59% over the past year, currently trading at $2.70.
CZ Warns Against Over-Tokenization
Former Binance CEO Changpeng “CZ” Zhao stated that crypto is the natural currency for AI, but warned against launching tokens without scale or purpose:
“Agents can take fees in existing crypto for providing services. Launch a coin only if you have scale. Focus on utility, not tokens.”
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