Artificial intelligence-related cryptocurrencies are underperforming the broader crypto market, coinciding with a surge in bearish bets on Nvidia — a key player in the AI sector.
While Bitcoin (BTC) rose modestly by 0.6% to $85,500, tokens like Bittensor’s TAO and Render Network’s RNDR slipped 3.6% and 1.7%, respectively. Other AI-linked tokens including FET, GRT, and SEI also posted losses of around 2%, per CoinGecko data.
The weakness follows unusual activity in Nvidia put options, particularly at deep out-of-the-money strikes. According to Convex Value, traders targeted $100, $85, and even $50 puts expiring between April 17 and May 16 — despite Nvidia trading near $110.
“These positions appear to be protective hedges, potentially anticipating short-term volatility,” a Convex analyst noted. While the chipmaker just announced plans to build AI supercomputers in the U.S., some traders may be taking precautionary steps.
Put options allow investors to profit from or guard against price declines, and the volume at lower strike prices suggests growing caution around Nvidia’s near-term outlook.
“The smart money might be bracing for turbulence,” Merlin Capital commented in a post on X.
The downturn in AI-related tokens could be a ripple effect, as sentiment around Nvidia — often viewed as the backbone of AI infrastructure — bleeds into digital assets tied to the same theme.
