Key Notes
- NVIDIA’s stock breakthrough above $190 catalyzed synchronized gains across all top ten crypto AI tokens on Thursday.
- Markets now price 97.8% probability of Federal Reserve rate reduction at upcoming October 29 policy meeting.
- Capital rotation from US treasuries into equities drove $2.6 billion sector expansion as investors hedged political shutdown risks.
The aggregate crypto AI sector reached $32 billion in market capitalization on Thursday, driven by NVIDIA’s rally to fresh all-time highs above $190 per share. As the chipmaker’s valuation approaches $4.6 trillion, it continues to cement its position as the dominant force shaping the global AI landscape.
The broader crypto market also received a boost as investors sought alternatives to hedge political risk triggered by the US government shutdown. Capital rotation out of US treasuries into blue-chip stocks provided additional momentum for risk assets during the session.
CME Group’s FedWatchTool shows 97.8% likelihood of a Fed rate cut on October 29 | Source: CMEGroup.com
ADP private payroll data released earlier in the week also eased bearish concerns. According to CME Group’s Fedwatch tool, markets now price in a 97.8% likelihood of an interest rate cut in the next Federal Open Market Committee (FOMC) slated for October 29.
NVIDIA Rally Propels Crypto AI Sector Valuation Above $32B
NVIDIA’s record-breaking stock rally has fueled widespread positive sentiment across crypto projects with artificial intelligence exposure. Coingecko data shows aggregate crypto AI market capitalization crossed the $32 billion threshold on Thursday, climbing 8.8% in the last 24 hours.
Crypto AI Sector Valuation Crosses $32 billion | Source: Coingecko
Notably, gains were evenly distributed, with all top ten crypto AI tokens trading in the green at press time. This synchronized rally signals the $2.6 billion sector growth was driven by sector-wide catalysts linked to NVIDIA’s all-time high rally.
Among standout movers, Virtual Protocol
VIRTUAL
$1.17
24h volatility:
7.1%
Market cap:
$763.79 M
Vol. 24h:
$116.29 M
price advanced 7.2% in intraday trade, while Render
RENDER
$3.67
24h volatility:
4.3%
Market cap:
$1.90 B
Vol. 24h:
$80.17 M
added 4% and Artificial Intelligence Alliance
FET
$0.61
24h volatility:
3.0%
Market cap:
$1.59 B
Vol. 24h:
$89.74 M
climbed 3%.
As NVIDIA stock edges closer to its $5 trillion market cap target, speculative bets on Fed rate cut expectations could see the Crypto AI sector maintain an upward trajectory in the near-term.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Ibrahim Ajibade is a seasoned research analyst with a background in supporting various Web3 startups and financial organizations. He earned his undergraduate degree in Economics and is currently studying for a Master’s in Blockchain and Distributed Ledger Technologies at the University of Malta.
Ibrahim Ajibade on LinkedIn