According to Cointelegraph, the cryptocurrency market has experienced a significant decline, with artificial intelligence and big data-related tokens losing $4.69 billion in market capitalization over three days. The market, which was valued at $38.82 billion on September 30, fell to $34.13 billion by October 3, casting doubt on the anticipated 'UPtober' trend where investors had hoped for a market recovery.
Despite October's historical reputation as a favorable month for traders, this year appears to be shaping up as 'Octo-bear' rather than 'UPtober.' Among the leading AI and big data tokens, Near Protocol (NEAR) has seen the steepest decline, dropping 14.88% over the past seven days. As of the time of writing, NEAR is priced at $4.61. Other top-performing tokens, such as Bitensor (TAO) and Internet Computer (ICP), also experienced significant price declines, losing 9.37% and 13.35%, respectively, over the same period. This downward trend has impacted the broader AI and big data market, with tokens like Render (RNDR) down 13.64% and Artificial Superintelligence Alliance (FET) down 16.68%.
Historically, October has been a period of strong gains and market stability, with many expecting Bitcoin (BTC) and altcoins to see upward momentum throughout the month. However, 2024 has defied that trend, with nearly $5 billion wiped from the AI and big data token market cap just three days into October. The broader crypto market has also seen a downward trend, influenced by geopolitical factors such as the ongoing conflict in the Middle East, regulatory challenges, and macroeconomic concerns.
Despite the recent downturn, AI tokens are still performing significantly better than in July, when the total market cap was around $20 billion. Considering the shift in pace from three months ago, the AI and big data token market is up over $13 billion, essentially trivializing the recent loss in market cap in October. While the long-term trend for BTC in the fourth quarter and early 2025 seems positive, recent signs indicate there could be some short-term volatility in October.
