$BTC
Several factors could be contributing to this decline:
1 Broad market sentiment is risk aversion – The broader cryptocurrency market is experiencing increased volatility, as investors move towards safer assets. AI tokens, being high-risk and speculative, are often the first to sell off under uncertain conditions.
2 Regulatory uncertainty – Governments and financial regulators are stepping up scrutiny of AI-based projects, especially in Defi and autonomous trading. Any negative regulatory news could spook investors.
3 Profit-taking – AI tokens have seen significant gains in recent months. A market slowdown was inevitable, as traders booked profits ahead of potential downturns.
4 Weak tech sector – AI and traditional tech stocks have also faced pressure, which could spill over to AI-related crypto projects.
