The recent crash in the global cryptocurrency market does not just expose how fragile most digital assets remain under macroeconomic stress but revealed the potential of AI-driven tokens.
When U.S. President Donald Trump announced plans for a 100% tariff on Chinese imports last Friday, automated trading systems across major exchanges executed rapid sell orders, the fastest digital selloffs since early 2024.
The total value of all digital assets declined to $3.78 trillion, a 1.2% drop from the previous day, according to CoinMarketCap data while index tracking smaller digital coins, known as altcoins, fell by as much as 40% at one point.
Bitcoin (BTC) fell 1.29% to remain below $112,000, while Ethereum (ETH) declined 2.6% to about $4,023. Among leading alternative tokens, Solana (SOL) dropped 3.9%, XRP slipped 2.6%, and BNB managed a modest 0.6% rise after Coinbase unexpectedly announced plans to list Binance’s native token.
Analysts termed the reaction, a “flight to safety” across global markets. The Crypto Fear & Greed Index dropped to 32, indicating a shift to risk aversion.
Data from Greekslive, an options analytics platform, showed more than $1.15 billion in Bitcoin put options were traded in 24 hours, with most contracts centered around the $104,000–$108,000 range.
Market technicians noted that the Relative Strength Index (RSI) for major cryptocurrencies averaged 43, indicating that most assets were oversold but not yet showing signs of recovery.
However, a small cluster of artificial intelligence–focused cryptocurrencies gained ground. The AI crypto sector rose 4.51% in the past day, led by ChainOpera AI (COAI), which surged 56.47% after climbing 25% the previous day.
COAI’s price, which has swung violently since its launch, rose from $0.21 to $48 in just over two weeks before dropping more than 80% and then rebounding to $23, giving it a $4.3 billion market value.
Meanwhile, a Financial Times investigation revealed that President Trump and his family earned over $1 billion in pre-tax profits from crypto ventures during the past year.
The ventures include the TRUMP and MELANIA tokens, which together generated about $427 million in sales and transaction fees.
The World Liberty Financial (WLFI) token brought in around $550 million, and the family’s USD1 stablecoin recorded $2.71 billion in sales.
One industry observer said, “The President’s endorsement of blockchain and tokenization has created an unusual overlap between policy influence and private gain.”
As AI-linked projects continue to draw investors’ attention, some analysts believe Bitcoin could find short-term support near $105,000, though sustained recovery may depend on Washington.
