AI tokens are up today – How NVIDIA sparked a surge
Speculators place massive bets on AI crypto tokens ahead of Nvidia earnings report.
- Bullish analysts’ estimates on Nvidia earnings report tipped wild rally in crypto AI tokens.
- Can the AI tokens sustain the momentum of the uptrend after the earnings report?
Crypto AI tokens saw massive front-running ahead of the much-awaited earnings call for the largest AI tech giant, Nvidia [NVDA], scheduled for the 28th of August after the New York trading session.
Speculators, especially those betting on AI tokens like Artificial Superintelligence Alliance [FET], Near [NEAR], and Render [RENDER] amongst others, boosted the tokens’ market cap to double-digits, adding $8 billion in a week.
This was contrary to the overall market downturn seen earlier in the week as Bitcoin [BTC] reversed recent gains.
On his part, crypto market commentator Paul Barron tipped RENDER, a crypto player in GPU computing for AI applications, for massive upside potential.
However, several AI tokens were slightly down at the time of writing, with NEAR declining by 4% in the past 24 hours. Will the recent AI tokens rally cool off?
What’s next for AI tokens?
According to QCP Capital, options data was pricing a 10% rally for NVDA stock and could induce volatility in the crypto market.
“We remain cautious that US equities might peak again here, given declining trading volumes and NVDA earnings today. NVDA options are pricing up to a 10% move higher tonight.”
However, the crypto trading firm added that potential short-term pressure could be short-lived as the market expected liquidity injection from Fed rate cuts in September.
“We believe that any dip in equities (and crypto) will be short-lived.”
So, what’s next for AI tokens after Nvidia’s earnings call? Market watchers believe the earnings report will test whether AI hype will continue.
The AI tech firm has outperformed analyst estimates in the past four earnings reports. Although analysts’ estimates were bullish on NVDA, the performance of AI crypto tokens has dropped slightly after the results.
In 2024, the past two earnings reports in February and May saw FET and RENDER surge massively before cooling off after the results.
A similar trend played out earlier in the week as FET, RENDER, and the rest of AI tokens rallied.
It remains to be seen whether the AI tokens rally cool-off will continue after the NVDA earnings report. However, the market sentiment after the NVDA Q2 earnings report could set the next direction for BTC and AI tokens.
