Crypto AI Tokens Soar as Bitcoin Awaits Trump Policies Below Record Prices

Crypto AI Tokens Soar as Bitcoin Awaits Trump Policies Below Record Prices

Cryptocurrencies in the emerging artificial intelligence (AI) agents sector experienced significant gains on Tuesday, while Bitcoin (BTC) stalled just below its recent record highs. Traders are awaiting the first crypto-specific actions from the Donald Trump administration, which has added to market speculation and volatility.

Tokens linked to AI agents, including AI16Z and ARC from the AI Rig Complex, surged over 30% during the day, with other notable tokens such as GRIFFAIN and ZEREBRO also posting double-digit advances. The rally in these AI-related tokens was partly fueled by news that President Trump is preparing to announce a massive $500 billion investment in private-sector AI infrastructure, with companies like OpenAI, Oracle, and Softbank reportedly involved. Additionally, Trump made headlines on Monday by rolling back a 2023 executive order issued by the Biden administration that sought to regulate AI risks to consumers, signaling a shift in the regulatory landscape that could favor the growth of the sector.

The AI agent sector has become an increasingly important part of the cryptocurrency space, rapidly growing into a multibillion-dollar asset class since October 2024, when the first AI tokens emerged. These AI agents, represented by cryptocurrency tokens, are autonomous programs designed to perform specific tasks, such as managing social media accounts, providing market analysis, creating memecoins, or executing on-chain transactions for trades. The rapid rise of AI agents in crypto has captured the attention of traders and investors, who see these projects as having significant potential for future growth.

Will Clemente, founder of Reflexivity Research, noted the sector's increasing prominence, particularly following AI luminary Sam Altman’s endorsement and Trump’s support for the expansion of AI infrastructure. "Conviction got tested on AI/crypto, but after Altman gave the blessing, Trump just did the same with the AI infra build-out headline," Clemente commented on X. He added that as long as Bitcoin’s price stays above $100,000, the AI agent sector could continue to attract major investment.

Bitcoin, meanwhile, has been consolidating around the $106,000 mark, showing a modest 3% gain in the past 24 hours. Although this is slightly below its Monday peak, Bitcoin received a boost after MicroStrategy (MSTR), the largest corporate holder of Bitcoin, added another 11,000 BTC to its treasury, investing $1.1 billion. With this new purchase, MicroStrategy now holds over $49 billion in Bitcoin. Bitcoin’s price remains elevated, and many are optimistic about its prospects, especially as the market waits for potential positive catalysts from the Trump administration.

However, Ethereum (ETH) continues to face challenges, especially with its price showing weakness against Bitcoin. ETH’s performance has been lackluster in recent months, with some community members expressing dissatisfaction with the Ethereum Foundation's handling of the blockchain’s market share and development activities. Ethereum’s decline in value relative to Bitcoin and its waning dominance in the blockchain space have prompted calls for reform within the Ethereum community.

The broader cryptocurrency market remains in a “wait-and-see” mode, with analysts recommending caution. K33 Research analysts, in a report released on Tuesday, advised “soft derisking” after a strong two-month rally in the market, driven by Bitcoin's surge and the speculative frenzy surrounding Trump memecoins. The analysts also noted that the expected executive orders from the Trump administration, such as the repeal of SAB 121 and the potential pardoning of Ross Ulbricht, could add volatility to the market. These anticipated actions could influence the direction of the crypto market, with traders keeping a close eye on the administration's next moves.

As the market awaits the unfolding of these political and regulatory developments, the focus remains on how Bitcoin, Ethereum, and the rapidly growing AI agent sector will perform. While Bitcoin’s price remains strong, the performance of AI-related cryptocurrencies and the potential impact of Trump's policies will be key factors driving market sentiment in the coming weeks.