Cryptocurrency Markets: Investors Cautious, Crypto in Decline

The Downtrend in Cryptocurrency Markets Continues

Fetch.ai (FET) lost 6.2% on Wednesday and has experienced a 43% loss this week. Other alternative cryptocurrencies like MYX and CAKE have also seen similar declines. The "Alternative Coin Season" index has dropped to levels of 38/100, raising concerns in the markets.

Bitcoin (BTC) has seen the opening of $140 million in short positions, and the number of open positions on the Binance exchange has increased. However, funding rates are showing a negative and flat trend, indicating a bear market.

The International Monetary Fund (IMF) has warned that a potential artificial intelligence market bubble could collapse similarly to the internet bubble. This situation further highlights the sharp corrections in AI-related tokens, particularly assets like Fetch.ai.

Discrepancy with Stocks and Precious Metals

Cryptocurrencies struggled to keep pace with the optimistic movements in stocks and precious metals on Wednesday. Bitcoin traded at $112,000, registering a modest increase; however, this level continues to remain at the lower end of the price range. Other alternative cryptocurrencies performed even worse. Fetch.ai lost 6.2% following Ocean Protocol's decision to withdraw from membership in the ASI Alliance and potential asset divestitures.