The market cap of cryptocurrencies linked to AI surged by more than 20% after the Nvidia CEO stated that the company is expecting a chip demand of about $1 trillion through 2027. The last time that the market cap fluctuated around this level was back in January 2024. Bittensor, one of the tokens that spiked, tested an important resistance level.
While delivering his keynote speech at Nvidia’s GTC developer conference, Nvidia CEO Jensen Huang stated that the company expects the chip demand to rise to $1 trillion through 2027. 60% of the demand originated from hyperscale cloud providers. After Huang’s speech AI tokens like FET, NEAR, and Bittensor started to spike.
The total market cap of AI tokens surged in the last 24 hours, crossing the $17 billion mark after nearly two years. The market cap was last seen hovering around this level during January 2024.
TAO gets rejected at 200-day MA
Bittensor (TAO) was one of the tokens that showed exceptional performance. The token rose exponentially from as low as $195 a few days ago to $277 after the CEO’s speech.
The token surged after Nvidia’s CEO stated the expected demand for the chip through 2027. By reaching above $275, the token touched the 200-day moving average, which is a long-term indicator. Once a token breaks above this level, it is considered bullish in the long term.
TAO prices could further crash
However, in the TAO case, the token did not cross above this level. It tested this level, but the bulls were not able to push past this level, as the market labeled the TAO prices as overbought. The relative strength index indicator, which shows if the token is undervalued or overvalued based on the prevailing market conditions, shows an overbought situation. As such, the market will correct the prices, and TAO will shed some of its value in the coming days.
