AI Tokens Lead the Crypto Market

Bitcoin (BTC) rose 5 percent on Friday following positive comments from Jackson Hole, but as of this morning, it has fallen back below the $64,000 level.

US Federal Reserve Chairman Jerome Powell said on Friday that the easing cycle will begin next month and that this will dispel the negative sentiment around risk assets.

After a nice bounce on Saturday, major tokens have recorded slight losses in the past 24 hours. Ether (ETH) is trading just above $2,700, while Solana’s SOL token and XRP are trading at $158 and 58 cents, respectively. Tron’s TRX is also up 3% amid the ongoing memecoin craze.

Investors say they expect the current rally to continue over the next few months.

“With inflation now more or less under control, the focus will shift to the labor market and whether the Fed can successfully rein in the U.S. economy,” Lucy Hu, senior analyst at Metalpha, told CoinDesk. “Rates are on the way as the economy stabilizes. We also expect market sentiment to continue to improve over the next few months, with potential crypto-friendly policies in place should Trump be elected.”

Investments in AI tokens continue to surge ahead of Nvidia’s (NVDA) earnings report on August 28.

FET rose 8.8% earlier in the day, while TAO gained 4.7%.

Analysts polled by FactSet expect earnings per share for the quarter to come in at 65 cents per share, up 141% from a year earlier.

If forecasts are accurate, this would be Nvidia’s fifth consecutive triple-digit growth, and the tech sector is expected to perform even stronger for the rest of the year given that the Fed is set to cut interest rates in September.