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- Crypto AI sector surpasses $32B market cap.
- NVIDIA stock rally fuels sector-wide gains.
- Fed rate cut expectations support bullish sentiment.
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The crypto AI sector surged past $32 billion in market capitalization on Thursday, propelled by NVIDIA’s remarkable rally to new all-time highs above $190 per share. As the chipmaker’s valuation nears $4.6 trillion, investors are increasingly viewing NVIDIA as the central force shaping both AI and crypto innovation.
NVIDIA Rally Sparks Broad Market Optimism
NVIDIA’s meteoric rise has triggered optimism across crypto projects with AI exposure. According to Coingecko, the aggregate crypto AI market climbed 8.8% in the last 24 hours, with all top ten tokens trading in the green. Notable gainers include Virtual Protocol (+7.2%), Render (+4%), and Artificial Intelligence Alliance (+3%). Analysts point to NVIDIA’s rally as a key catalyst behind this synchronized growth, highlighting the link between major tech equities and AI-focused crypto assets.
Macro Factors Support Risk Appetite
Beyond sector-specific gains, broader market dynamics contributed to the rally. Political uncertainty from the U.S. government shutdown pushed investors to seek alternatives to traditional assets. Capital flowed out of U.S. Treasuries into blue-chip stocks and riskier assets, including crypto, boosting liquidity across the board.
Adding to optimism, CME Group’s FedWatchTool shows a 97.8% probability of a Fed rate cut on October 29. Coupled with easing bearish sentiment from recent ADP private payroll data, markets are pricing in favorable monetary policy, which could further sustain upward momentum in crypto and AI-linked assets.
Also Read: Kraken Lists Tokenized Apple, Tesla, Nvidia Stocks for Global Users via xStocks
Looking Ahead for Crypto AI
With NVIDIA edging closer to a $5 trillion market cap, speculative bets and AI-driven crypto projects may continue to attract investor attention. The sector’s synchronized gains suggest that investor confidence is growing, and the combined influence of tech equities and macroeconomic expectations could maintain near-term upward momentum.
As the market eyes the Fed’s upcoming decisions and NVIDIA’s continued rally, the crypto AI sector is emerging as a high-growth arena for both speculative and strategic investors.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
