The top cryptocurrency associated with artificial intelligence (AI) has fallen more than 20% in seven days, CoinDesk reported. Google Trends shows that public interest in AI is at its peak.
Cryptocurrency-related Google search queries have historically surged at major market tops, validating legendary investor Warren Buffett’s dictum to buy bearish and sell bullish. Now, similar dynamics appear to be playing out in the market for tokens related to artificial intelligence (AI). So-called AI coins, such as FET, RNDR, TAO and GRT, have lost as much as 30% of their value in the past seven days, according to data source Coingecko, while Google Trends suggests that search interest in AI may have peaked. FET is the fourth worst performing top-100 cryptocurrency in the past seven days. Market leader Bitcoin (BTC) has fallen 2.8% in the same period, while the CoinDesk 20 Index (CD20), a measure of the broader crypto market, has fallen 6%.
Google Trends, widely used to gauge the interest of average or retail investors in hot topics, shows that the value of search queries for "AI" over the past 12 months peaked at 100 last week. That's the same value as it has been for the past five years. A score of 100 represents the highest popularity -- the maximum number of searches for a query over a given time frame. In other words, excitement about artificial intelligence has hit the streets, and more existing and potential retail investors are seeking out information about it and Nasdaq-listed chipmaker Nvidia (NVDA), the bellwether for all things AI.
Although only indicative, this tool can be a good indicator since the masses are often driven by sentiment and are often the last to enter bull markets and exit bear markets. For example, searches for BTC and Solana’s SOL surged at their respective price tops in May and November 2021.
It is worth noting that Bitcoin is known to have a strong positive correlation with NVDA, and after ChatGPT's debut, Bitcoin bottomed out along with technology stocks in late 2022 as general awareness of artificial intelligence increased. According to Jeremy Grantham, chief investment strategist at GMO, the AI craze represents a bubble within a bubble that may soon burst. This is an insight that may make those considering investment decisions cautious.
