Altcoin Surge: AI-Related Cryptos Lead as Bitcoin Breakout Nears with Q4 Catalysts
The cryptocurrency market saw a surge in altcoins on Monday, with artificial intelligence-related cryptocurrencies leading the rally. Native tokens of layer-1 blockchain Near (NEAR) and decentralized computing platform Render (RNDR) experienced impressive gains of 18%-20% over the past 24 hours. These tokens outperformed bitcoin (BTC) as they led the charge within the broader market benchmark CoinDesk 20 Index, which saw a 1.5% increase during the same period.
Decentralized machine learning protocol Bittensor (TAO) also saw a significant climb of 17% during the same timeframe, while Livepeer (LPT) continued its upward momentum. Barry Silbert, CEO of crypto investment firm Digital Currency Group (DCG), highlighted Livepeer as an “under the radar crypto AI play” in a recent post, further fueling interest in the token. Additionally, Livepeer is a constituent of the Grayscale Decentralized AI Fund, issued by DCG’s asset management subsidiary.
In contrast, bitcoin struggled to gain traction with less than a 1% increase, as it aimed to reclaim the key 200-day moving average below $64,000. Ethereum’s ether (ETH) showed relative strength with a 3.5% return during the same period.
Notable outperformers in the CoinDesk 20 Index on September 23 included the native token of blockchain data availability project Celestia (TIA), which saw a 12% increase. This surge came on the heels of news about Celestia Foundation, the project’s ecosystem development organization, securing a $100 million investment led by Bain Capital Crypto. The positive price action may have been bolstered by Democratic nominee Kamala Harris expressing support for innovative technologies like AI and digital assets at a recent fundraiser event.
Amidst the cryptocurrency rally, traditional markets also saw movement, with gold reaching new record prices and stocks edging higher since the Federal Reserve’s recent interest rate cuts. According to Chicago Fed President Austan Goolsbee, more rate cuts are likely in the coming months as the Fed aims to bring interest rates down to a neutral level of around 3%.
Looking ahead, there is optimism surrounding bitcoin’s potential for a breakout to new all-time highs in the fourth quarter of the year. Markus Thielen, founder of 10x Research, believes that several catalysts could fuel this rally, including the FTX estate redistributing assets to creditors, potential developments around BlackRock’s spot bitcoin ETF (IBIT), and increasing institutional liquidity in the market.
While there may be uncertainty surrounding the upcoming U.S. presidential election, Thielen asserts that government spending and deficits will continue to rise regardless of the outcome, ultimately benefiting bitcoin. With historical data suggesting that the months between October and March are typically strong for bitcoin, investors are hopeful for a bullish end to the year.
In conclusion, the cryptocurrency market is experiencing a surge in altcoins, particularly those related to artificial intelligence. As bitcoin aims to reclaim key levels and potentially break out to new highs, investors are closely watching for catalysts that could drive further growth in the market. With traditional markets also showing signs of movement, the coming months are poised to be eventful for the cryptocurrency industry.