Bitcoin digests Valentine inflation while AI tokens crash

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Last Updated on 5 November 2023 by CryptoTips.eu

As predicted, Bitcoin reacted quite volatile to the newly released inflation figures from the United States while AI tokens, which were the big hype last week and went up hundreds of percentage points, are now experiencing a similarly spectacular crash.

Bitcoin responds to inflation

We already indicated last week that the inflation report from the US (also called the CPI report, which stands for consumer price index) would be indicative of the further direction of both crypto and stock exchanges.

With the data showing that inflation in the US refuses to quickly fall below the desired level anytime soon, it remains to be seen what the Fed will do with this knowledge.

Bitcoin reacted very volatile and first went lower and then higher when the numbers came out. At the time of writing, Bitcoin is trading for $22,130 while Ethereum is worth $1,550.

Equity markets in the US are also unsure how to interpret this.

Advertentie.

Cryptotips warning

On February 9, we published a follow-up to the wild story of AI coins like SingularityNET (based on the title of Ray Kurzweil’s legendary book that describes the moment when the intelligence of a single machine surpasses that of all of humanity). The popularity of ChatGPT and Dall-E made it logical that people wanted to invest in AI products, hoping for a quick profit.

Back then we warned against buying such coins as it seemed to us like the hype that arose in 2020 around DeFi coins or the craze for all NFT launches in 2022. Both of these hypes came with spectacular gains, and likewise spectacular crashes.

Only a week later and SingularityNET was briefly the biggest faller in the Coinmarketcap top 100, trading at half its temporary high of 2023. Since the inflation numbers came out, it is moving up a bit again. As stated, very volatile and risky.

The madness of crowds entails risk. So, as always, do your own research before purchasing a particular coin.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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