- Excitement among bullish analysts over Nvidia’s earnings report sparked a surge in crypto AI tokens.
- Can the AI tokens maintain their upward momentum post earnings report?
Crypto AI tokens witnessed a significant surge in anticipation of Nvidia’s highly anticipated earnings call, scheduled for August 28th after the New York trading session.
Speculators, particularly those interested in AI tokens such as Artificial Superintelligence Alliance [FET], Near [NEAR], and Render [RENDER], contributed to a double-digit increase in market cap, adding $8 billion within a week.
This surge contrasted with the overall market downturn earlier in the week as Bitcoin [BTC] reversed its recent gains.
Crypto market commentator Paul Barron highlighted RENDER, a key player in GPU computing for AI applications, for its significant upside potential.
However, some AI tokens experienced a slight decline at the time of writing, with NEAR dropping by 4% in the last 24 hours. Will the recent rally in AI tokens subside?
Source: CoinMarketCap
What Lies Ahead for AI Tokens?
QCP Capital revealed that options data indicated a potential 10% surge in NVDA stock, which could trigger volatility in the crypto market.
“We are cautious about the possibility of a peak in US equities, given the decrease in trading volumes and NVDA earnings today. NVDA options are pricing in a potential 10% increase tonight.”
Nevertheless, the crypto trading firm suggested that any short-term pressure could be short-lived as the market anticipated liquidity injections from Fed rate cuts in September.
“We believe that any downturn in equities (and crypto) will be brief.”
Therefore, what’s in store for AI tokens post Nvidia’s earnings call? Market analysts believe that the earnings report will determine the future of AI hype.
While analysts were optimistic about NVDA, the performance of AI crypto tokens dipped slightly after the results were announced.
In 2024, both FET and RENDER experienced significant surges following the February and May earnings reports before stabilizing post-results.
A similar trend emerged earlier in the week as FET, RENDER, and other AI tokens rallied.
Source: NVDA vs. AI crypto tokens performance
The continuation of the AI tokens rally cooldown post Nvidia’s earnings remains uncertain. However, market sentiment following the NVDA Q2 earnings report could dictate the future direction of BTC and AI tokens.
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