AI-Linked Crypto Tokens Drop 3%-5% as Apple's Event Disappoints Traders

AI-linked crypto tokens fall 3%-6% as Apple's event disappoints, CoinDesk Computing Index down 2.5%.

By Barry Stearns

6/10, 16:30 EDT
Bitcoin / U.S. dollar
Apple Inc.
Bitcoin / US Dollar

Key Takeaway

  • AI-linked cryptocurrencies like Render (RNDR), (FET), and SingularityNET (AGIX) fell 3%-5% after Apple's event.
  • The CoinDesk Computing Index, including AI-related tokens, dropped 2.5%, underperforming bitcoin and the broader digital asset market.
  • Apple shares closed down nearly 2% despite announcing new AI features and a partnership with OpenAI.

AI Cryptocurrencies Decline

Artificial intelligence-linked cryptocurrencies experienced a notable downturn on Monday, coinciding with Apple's highly-anticipated annual developers event. Tokens such as Render (RNDR), (FET), and SingularityNET (AGIX) saw declines ranging from 3% to 5% over the past 24 hours. Bittensor's TAO token fell nearly 6%, while Near Protocol (NEAR) dropped by 3.2%. The CoinDesk Computing Index, which tracks tokens with AI-related utilities, was one of the worst-performing sectors among digital assets, losing 2.5% in market value. This underperformance was stark compared to Bitcoin (BTC) and the broader CoinDesk 20 Index.

High Expectations for Apple

The market had high expectations for Apple's Worldwide Developers Conference (WWDC2024), hoping for significant AI-related announcements. Apple introduced "Apple Intelligence," a suite of AI features for its products, and announced a partnership with OpenAI to integrate ChatGPT into its software. Despite these announcements, Apple's shares closed nearly 2% lower, reflecting investor disappointment. Greg Martin, co-founder of Rainmaker Securities, commented, "If the event is uninspiring, I think the stock will be stagnant for a while."

Market Reactions and Analysis

The decline in AI-linked cryptocurrencies and Apple's stock can be attributed to unmet high expectations. The conference was deemed "the most important event for Apple in over a decade" by Wedbush, but the announcements failed to deliver the anticipated impact. Apple's stock, which had rallied nearly 20% from an April low, fell 0.7% on Monday ahead of the event. Despite a positive earnings report in early May and the largest buyback in US history, Apple's year-to-date rise of 1.6% pales in comparison to the Nasdaq 100 Index's 13% advance. Analysts like Stacy Rasgon from Bernstein noted that while AI functionality on the iPhone is "useful and pervasive," it is "not necessarily revolutionary" compared to competitors like Google and Samsung.