AI Tokens Struggle as Nvidia Options Trading Tips at Market Caution
In a recent downturn, AI-linked tokens see a decline while unusual trading in Nvidia options suggests market hedging.
Tokens linked to artificial intelligence have lagged behind other major cryptocurrencies in the past day. This downturn coincides with noteworthy trading in put options associated with Nvidia (NVDA), which recently announced plans to start constructing AI supercomputers in the U.S.
While Bitcoin (BTC) recorded a modest increase of 0.6% over 24 hours to reach $85,500, Bittensor’s TAO token decreased by 3.6% to $239, while Render Network’s RNDR token saw a 1.7% fall to $3.93, based on Coingecko data. Other AI-related tokens, including FET, SEI, and GRT, also experienced losses, averaging around 2%.
On Monday, Nvidia’s put options attracted attention as traders engaged in protective plays against potential market declines. This activity notably included options with strike prices below Nvidia’s current spot price of $110.
According to analysts, the unusual activity in these options signals caution within the market as traders make precautions against unexpected downturns, suggesting a possibility of wider implications within the tech indices.
