AI Tokens Surge as Bitcoin Falls Below $64,000; Anthony Scaramucci Says Technology is Still in Early Adoption Stage
Bitcoin (CRYPTO: BTC) fell on Monday, dropping below the $64,000 level during European trading hours.
What Happened: After rising 5% on Friday following optimistic comments from Federal Reserve Chairman Jerome Powell, it fell 1.2% to $63,400.
Powell's comments at the Jackson Hole symposium hinted at a coming cycle of monetary easing, initially boosting risk assets as investors reacted to the prospect of easier access to capital.
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Over the weekend, major cryptocurrencies saw a series of gains and losses.
Ether (CRYPTO: ETH) was trading just above $2,700, while Solana (CRYPTO: SOL) and Ripple (CRYPTO: XRP) traded at $157 and $0.59, respectively.
In contrast, Tron (CRYPTO: TRX) recorded a 3% increase, buoyed by the ongoing enthusiasm around the meme coin, which continues to fuel demand for the token.
On Monday, attention shifted to artificial intelligence (AI) tokens, driving a market surge as traders in Asia invested heavily in Cointelegraph (CRYPTO:FET) and Bittensor (CRYPTO:TAO), tokens linked to the “Alliance for Artificial Superintelligence.”
The move comes ahead of Nvidia's highly anticipated earnings report, scheduled for August 28.
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Historically, Nvidia's performance has been a key indicator in the AI token space, with traders often taking positions ahead of the company's earnings releases.
FET was up 8.8% by early afternoon in Hong Kong, while TAO was up 4.7%.
Citing FactSet estimates, analysts expect NVIDIA's upcoming earnings to be a blockbuster, with earnings per share rising 141% to $0.65 and revenue rising 113% year-over-year to $28.72 billion.
This marks Nvidia's fifth consecutive quarter of triple-digit growth and underscores the strength of the technology sector, especially as the Federal Reserve is expected to cut interest rates in September.
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Why it matters: SkyBridge Capital founder Anthony Scaramucci shared his thoughts on bitcoin's current state and future potential, saying he sees it as an early-adoption technology rather than currently a store of value.
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While Scaramucci acknowledged the potential for Bitcoin to evolve as a store of value, he noted the significant regulatory challenges it faces.
“There's a lot going on with bitcoin related to regulatory headwinds,” he added, highlighting the uncertainty that continues to cloud bitcoin's path forward.
Scaramucci also voiced his opposition to certain market trends, particularly the rise of meme coins like Grimace Coin.
“Grimous Coin is not something I like, and I completely understand why the SEC doesn't like it,” he said.
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Scaramucci stressed the need to focus on positive developments in the cryptocurrency space, such as advances in Bitcoin payments systems and other layer-1 technologies that could spur economic development.
Looking ahead, Scaramucci is optimistic that Bitcoin will become more widely accepted, especially as financial advisors and registered investment advisors begin to advocate for its inclusion in investment portfolios.
“Wall Street is a sales machine, and they haven't stepped up their sales machine yet,” he noted, “but imagine tens of thousands of FAs and RIAs explaining to people that they need this position in their portfolios. Yes, it's coming.”
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In a note shared with Benzinga, Alvin Kang, COO of Bitget Wallet, said that the current overall economic environment remains one of high interest rates, and that Bitcoin price growth can only be achieved once the Federal Reserve starts lowering interest rates and the market becomes fully active.
“As capital inflows increase, so does bitcoin's mainstream awareness, further enhancing its status as an investment asset,” Kang said.
Looking ahead: As the landscape surrounding digital assets continues to change, events like Benzinga’s Future of Digital Assets on November 19th will be crucial in bringing together industry leaders, investors and regulators to discuss the challenges and opportunities ahead.
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The article Bitcoin Drops Below $64,000 as AI Tokens Surge: Anthony Scaramucci Says It's Still 'Early Adoption Technology' originally appeared on Benzinga.com.
