Cryptocurrency Based on Artificial Intelligence Explodes Amidst Bitcoin Sideways

Bitcoin (BTC) tends to move sideways in the range of $50.800 – $52.400 in the last five days. Monday (19/2) morning at 08:00 WIB, BTC was perched at $51.636, experiencing a decline of 0,86% in the last 24 hours, but still strengthening by 3,60% for the last 7 day period. Currently, Bitcoin's market capitalization is $1,011 trillion, while Bitcoin's dominance over the overall crypto market (BTC.D) is at 53,00%

Meanwhile, the total global crypto market capitalization is currently $1,915 trillion, up 0,16% in the last 24 hours and has shot up 85,00% from last year.

Last Week Summary

Last week BTC reached the $52.800 level on Thursday (15/2) for the first time since December 2021. The weekly timeframe outlook shows the BTC price has been increasing since the beginning of 2023. The upward movement accelerated from October to reach a high of $49,050 in January 2024 before finally continuing to rise until now, which was triggered by the approval of a spot Bitcoin ETF on January 10, 2024.

Demand for Bitcoin exchange-traded funds (ETFs) surged again last week with a record $2.4 billion of the $2.45 billion flowing into digital asset investment products. In last week's ETF trading, there was an outflow of $623 from GBTC (Grayscale). Still, $1,6 billion in inflows went to IBIT (BlackRock) and $648 million to FBTC (Fidelity), according to CoinShares data.

The crypto market faced a short-term shock last week with the release of US economic data. The US Department of Labor reported that the Consumer Price Index (CPI) rose 3,1% from a year earlier in January, down from 3,4% in December. Despite the slowdown, this figure is still above market estimates of 2,9%. On Friday (16/2), the US producer price index (PPI), which measures the prices paid by domestic producers of goods and services, rose 0,3% in January, showing the biggest increase since August.

Important events this week 

Stock markets in the US are closed on Monday due to the “President's Day” holiday. Market players will be waiting for the FOMC meeting minutes which will take place on Wednesday (22/2) to see clues to the direction of the US Central Bank's policy. Previously, at the beginning of the year, the possibility that the Fed would lower interest rates in March was 79%. However, According to the CME Group's FedWatch Tool, there is currently only an 8,5% chance of a rate cut in March and a 31,2% chance of a 25 bps rate cut in May.

Financial Expert Ajaib Crypto, Panji Yudha, explained, "Technically, Tuesday (20/2) morning at 08:00 WIB BTC was at the level of $51.636. Next, BTC has the potential to move sideways again around $51.000 – $52.400 with a support area at $50.000 and the nearest resistance at $52.500. Short-term crypto traders are expected to anticipate the statement at the FOMC Meeting Minutes on Wednesday."

At the beginning of this week, most altcoins experienced significant increases, especially from the Artificial Intelligence (AI) sector, which experienced positive performance when viewed from the last 7 day time period. Altcoins such as: Worldcoin (WLD) shot up 175% to print an all-time high to trade around $7,32, Singularity NET (AGIX) also rose by 64% to $0,5138 and Render Network (RNDR) also rose 28,66% perched at $6,17.

"The increase in the AI ​​sector was triggered by OpenAI releasing Sora AI on Friday (16/2). Sora AI is a text to video generator that can create videos up to 60 seconds long based on written commands using generative AI. "However, it is hoped that investors will not have FOMO seeing the fantastic increase, of course it is recommended to do research again before jumping into collecting tokens which are included in the Artificial Intelligence category," said Panji.

Panji further added, "Furthermore, this week the release of Nvidia's Q4 2023 earnings is scheduled for Wednesday (21/2). This report becomes very important for AI tokens like WLD, GRT, RNDR, and AGIX, etc. Nvidia's performance can be seen as a barometer of sentiment for the AI ​​sector and positive results could again boost the AI ​​sector this week.”

Meanwhile, the king of Altcoins based on market capitalization, namely Ethereum (ETH), is slowly starting to reach the $3.000 level, where this level was last reached in April 2022. This morning, Tuesday (20/2) at 08.00 it was at $2.934, up 1,80% in 24 hours final.

“Ethereum is still experiencing positive momentum with the ETH Denver event 23 Feb-13 Mar 2024 where this important meeting will likely provide a series of important announcements regarding Ethereum in the future. Additionally, Dencun's upgrade on March 13, along with speculative anticipation of an Ethereum ETF approval in May appears to potentially shed light on Ethereum's future from a public confidence and regulatory perspective.”