Crypto AI Tokens Surge as Bitcoin Holds Steady Below Record Highs, Awaiting Trump’s Next Move
The cryptocurrency market experienced notable shifts on Tuesday as tokens in the emerging AI agent sector skyrocketed, while Bitcoin (BTC) paused just below its recent all-time highs. Investors are closely monitoring potential crypto-focused initiatives from the Donald Trump administration.
AI-focused tokens such as AI16Z and AI Rig Complex’s ARC surged over 30%, with others like GRIFFAIN and ZEREBRO posting impressive double-digit gains. This rally was partly fueled by news of President Trump’s upcoming announcement regarding a $500 billion private-sector investment in AI infrastructure, involving prominent firms like OpenAI, Oracle, and SoftBank. Trump also reversed a 2023 executive order by Joe Biden, which sought to regulate AI risks, signaling a more hands-off approach to the sector.
Since October, when the first AI tokens emerged, the crypto AI agent sector has grown into a multibillion-dollar market, with traders increasingly captivated by these autonomous programs. These AI agents, represented by crypto tokens, execute specialized tasks such as social media activity, market analysis, memecoin creation, and on-chain trading.
“Conviction in the AI/crypto space was tested, but with Sam Altman backing it and Trump now endorsing AI infrastructure, the sector looks poised for growth,” said Will Clemente, founder of Reflexivity Research, in a post on X (formerly Twitter). “As long as Bitcoin holds above $100,000, the AI token space remains where the momentum lies.”
Broader Market Awaits Catalysts from Trump
The broader cryptocurrency market remains in a holding pattern, with most large-cap tokens seeing modest gains. Bitcoin rose 3% in the past 24 hours, trading at $106,000—slightly below its Monday peak. The price was bolstered by MicroStrategy’s (MSTR) acquisition of an additional 11,000 BTC for $1.1 billion, bringing the firm’s total holdings to over $49 billion.
Ethereum (ETH), however, continued to struggle, hitting its weakest price against BTC in four years amid mounting community criticism of the Ethereum Foundation for losing market share to rival blockchains.
K33 Research analysts advised caution, noting the recent euphoria surrounding Bitcoin and Trump’s potential crypto policies. “After a frothy weekend of memecoin mania and soaring expectations for Trump’s crypto initiatives, we recommend some profit-taking following the strong two-month rally,” the analysts said in a report. They predicted significant volatility tied to potential executive orders, including the possible repeal of SAB 121 or a pardon for Ross Ulbricht.
Bitcoin’s Bright Outlook Amid Turbulence
Over the weekend, Bitcoin encountered resistance at $110,000 but quickly rebounded from dips to $100,000. Joel Kruger, market strategist at LMAX Group, emphasized the resilience of investor confidence.
“There was speculation about potential selling pressure due to Trump’s lack of crypto mentions during his inauguration,” Kruger said in an emailed statement. “However, such fears appear overblown, especially given Trump’s recent support for the sector, including his memecoin ventures, activity at World Liberty Financial, and discussions of a strategic Bitcoin reserve.”
Despite temporary pullbacks, the outlook for Bitcoin remains “exceptionally bright,” with strong buying interest supporting the market during any downturns, Kruger added.
As traders await further clarity on Trump’s crypto-specific policies, the spotlight remains on Bitcoin’s resilience and the explosive growth of AI-driven tokens.
Leave a comment