AI-Fueled Cryptocurrencies Lead Altcoin Rally, Bitcoin Poised to Break All-Time High on Multiple CatalystsArtificial intelligence-related cryptocurrencies spearheaded a rally in the crypto market on Monday, with altcoins outperforming Bitcoin (BTC). The native tokens of first-layer blockchain Near (NEAR) and decentralized computing platform Render (RNDR) jumped 18%-20% in the past 24 hours, topping the gains in the CoinDesk 20 index, which rose 1
AI-Fueled Cryptocurrencies Lead Altcoin Rally, Bitcoin Poised to Break All-Time High on Multiple Catalysts
Artificial intelligence-related cryptocurrencies spearheaded a rally in the crypto market on Monday, with altcoins outperforming Bitcoin (BTC). The native tokens of first-layer blockchain Near (NEAR) and decentralized computing platform Render (RNDR) jumped 18%-20% in the past 24 hours, topping the gains in the CoinDesk 20 index, which rose 1.5% over the same period.
Decentralized machine learning protocol Bittensor (TAO) rose 17% during the same period, while Livepeer (LPT) also saw significant gains. DigitalCurrencyGroup (DCG) CEO Barry Silbert called LPT the underrated crypto AI play in an X post. The token is part of Grayscale's Decentralized AI Fund, issued by DCG's asset management subsidiary.
Meanwhile, Bitcoin lagged, gaining less than 1%, struggling to reclaim the key 200-day moving average just below $64,000. Ethereum's Ether (ETH) performed relatively better, returning 3.5%.
The native token (TIA) of blockchain data availability project Celestia also stood out, surging 12% on Monday after news that its ecosystem development organization, the Celestia Foundation, raised $100 million in funding led by Bain Capital Crypto.
TIA's price movement may have been spurred by Democratic candidate Kamala Harriss statement at a fundraiser that she would be a tech-friendly president and would encourage innovative technologies, like artificial intelligence and digital assets.
In traditional markets, gold hit a new high, while stocks edged higher. The stock market continued to climb following the Federal Reserve's 50 basis point rate cut on Wednesday. Chicago Fed President Austan Goolsbee said Monday that this could be the first of several rate cuts next year.
We have a long way to go in the next 12 months to get rates down to the neutral level, Goolsbee said. The Fed's economic projections show a neutral rate close to 3%.
Markus Thielen, founder of 10xResearch, said in an interview with CoinDeskMarketsDaily on Monday that Bitcoin is poised to hit a new all-time high in the fourth quarter. He noted that a rate cut in 2019 led to a fall in Bitcoin's price, but if this rate cut comes as a result of inflation falling to 2% rather than economic weakness, it could be beneficial for Bitcoin.
Thielen expects Bitcoin to break out of a six-month sideways trend and reach a new all-time high in the final quarter, pointing to multiple catalysts pushing Bitcoin higher. Historically, October to March has been Bitcoin's strongest performing period, accounting for the bulk of its annual gains.
Thielen said that FTX assets could be redistributed to creditors in the coming months, with about $16 billion flowing back into crypto assets. The U.S. Securities and Exchange Commission's approval last week of the listing options for BlackRock's spot bitcoin ETF (IBIT) is a positive development that paves the way for more financial instruments surrounding the ETF's launch and ultimately brings more institutional liquidity to the leading asset.
While many crypto investors are uncertain about who will be the next U.S. president in November, Thielen said that the election doesn't matter" because government spending and deficits will continue to increase, which would benefit BTC.
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