The cryptocurrency market has experienced a significant decline, with artificial intelligence and big data-related tokens losing $4.69 billion in market capitalization over a turbulent three-day period. The market, which was valued at $38.82 billion on September 30, witnessed a drop to $34.13 billion by October 3.
This downturn raises concerns about the anticipated 'UPtober' trend, where optimistic investors had hoped for a recovery in market values. Historically, October is recognized as a favorable month for traders, suggesting a rebound in cryptocurrency conditions. However, data from the onset of October indicates a shift towards what can be called 'Octo-bear’ instead of ‘UPtober.’ Among the AI and big data tokens, Near Protocol has suffered the most considerable decrease, plunging by 14.88% over the past week.
At the time of observation, NEAR was trading at $4.61. Other notable tokens such as Bitensor and Internet Computer have also faced steep declines, recording losses of 9.37% and 13.35%, respectively, during the same timeframe. This decreasing trend has adversely affected the larger AI and big data sector, with tokens like Render plummeting 13.64% and Artificial Superintelligence Alliance down 16.68%. Historically, October has been characterized by robust gains and market stability, prompting many market participants to speculate about the potential upward momentum of Bitcoin (BTC) and alternative cryptocurrencies.
Nevertheless, 2024 has markedly contrasted this narrative, erasing nearly $5 billion from the AI and big data token market cap, merely three days into the month. The broader crypto marketplace is grappling with a downward trend, heavily influenced by geopolitical dynamics, particularly the ongoing conflict in the Middle East, alongside regulatory uncertainties and overarching macroeconomic issues. Despite the recent slump, it's noteworthy that AI tokens continue to outperform their positions earlier in the year, particularly when in July the total market cap hovered around $20 billion.
Given the transformative changes observed over the past three months, the market for AI and big data tokens has surged by over $13 billion, thus downplaying the recent losses recorded in October. While the long-term outlook for BTC in the fourth quarter and early 2025 appears promising, recent indicators suggest potential short-term volatility could still loom over the month of October..