Nvidia Shakes The Crypto Market: AI Tokens In Free Fall

The market for cryptocurrencies related to artificial intelligence has just experienced a brutal setback. After the much-anticipated Nvidia GTC conference, some AI tokens recorded declines of over 6% in 24 hours. What explains this brutal drop? Should we be worried about crypto investments? Here are some elements of response below!

Collapse of the AI crypto market after Nvidia: Here’s why!

Nvidia remains a key player in the artificial intelligence sector. Its announcements always impact (directly or indirectly) the crypto market, and more particularly the AI-related tokens.

The latest bearish movement follows the presentation of Nvidia’s new AI chips. They are:

• Blackwell Ultra expected for 2025.
• Vera Rubin expected in 2026.

The Nvidia stock itself has lost 3.4%, dragging down several tech stocks in its wake, including Palantir (-4%).

In practical terms, Nvidia’s aggressive timing in launching its new chips seems to worry the crypto market. Crypto experts raise an interesting question: will the company be able to maintain sufficient demand in the face of a constantly changing supply?

That’s not all! The rise of the Chinese AI model DeepSeek further fuels investor nervousness. In response, Nvidia CEO Jensen Huang stated:

The reliance of DeepSeek on advanced reasoning models would only increase the demand for Nvidia products.

The announcement of an annual chip update cadence could imply that the technological cycle is accelerating. This element could also confuse AI crypto investors. A rapidly evolving landscape could indeed complicate the adoption of AI solutions within blockchain. This would affect the performance of AI crypto tokens.

A broader impact on blockchain and bitcoin?

The drop in AI cryptocurrencies occurs amidst broader tensions in financial markets:

• The Dow Jones lost 260 points (-0.62%).
• The S&P 500 fell by 1.07%.
• The Nasdaq dropped by 1.71%.

Such instability can impact the entire blockchain ecosystem, including assets like bitcoin (still considered the barometer of the crypto market).

Investors are indeed worried that the recent correction in technology markets could spread to the crypto universe. Especially since the latter is already subject to regulatory uncertainties and fluctuating adoption.

The 6% drop across several AI tokens in just 24 hours highlights an increasing correlation between technological advancements and fluctuations in the crypto market. In this regard, a resurgence of AI cryptos could depend on the stock market performance of artificial intelligence giants (including Nvidia and its competitors).

The drop in AI tokens after Nvidia’s conference illustrates the importance of investor confidence. The coming months will be crucial to see if these AI crypto tokens can rebound or if they will remain under pressure due to the rapid evolution of the sector.