Benzinga – South Korean traders are showing a growing interest in digital assets linked to artificial intelligence (AI.) This surge in interest has seen the country’s share of global trading volumes for Nvidia Corp.’s AI-linked tokens rise to 18.7% in May from a mere 0.6% in mid-2023.

What Happened: The AI tokens are typically issued by early-stage projects that aim to use blockchain technology for AI services, reported Bloomberg on Friday.

Despite the unproven utility of this combination, South Koreans are showing a strong affinity for both AI and crypto.

Approximately 10% of the South Korean population is exposed to tokens, with the majority of local trading being in volatile smaller coins, rather than the more established Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).

Notably, Nvidia and Microsoft Corp. are the second and third most popular overseas stocks among domestic investors in South Korea this year, according to Korea Securities Depository figures.

Nvidia’s chips are integral to AI computer processing, while Microsoft is a key supporter of OpenAI and its ChatGPT tool.

See Also: ‘Dogecoin Killer’ Shiba Inu’s Burn Rate Spikes Nearly 250% As Whales Show Interest In The Memecoin

The weekly trading volumes for AI tokens have averaged $8 billion since February, a significant increase from the all-time low of $300 million in mid-2023.

However, there are concerns about the sustainability of the interest in AI-linked crypto projects, given the digital-asset sector’s history of booms and busts in coins tied to popular memes or social trends.

Why It Matters: South Korea has been a significant player in the global crypto market for some time now. As of September 2023, South Korean citizens had declared over $98 billion in foreign digital assets, leading to the country being dubbed a “crypto nation.”

The growing interest in AI-linked crypto projects is not surprising, given South Korea’s strong tech industry and the country’s ongoing fascination with cryptocurrencies.

This trend also reflects the global enthusiasm for AI and its potential applications in various sectors, driving investors to explore AI-related opportunities in the crypto space.

Meanwhile, top AI-based cryptocurrency tokens tumbled last week after AI chip giant Nvidia Corp. reported higher-than-expected earnings for the first quarter. Render, the token made gains ahead of the earnings announcement, was trading 3.79% lower. Render is know for the “most significant” ties with the tech giant

Read Next: ‘Dogecoin Killer’ Shiba Inu Spikes 5%: Trader Sees ‘SHIB Season’ And This Data Point Could Mean He’s Right

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

DMM Bitcoin Co., the operator of a Japanese cryptocurrency exchange, said Friday that digital assets worth at least 48.2 billion yen ($300 million) have disappeared for an unknown reason.

The Tokyo-based company under major IT firm DMM.com LLC said it detected the abnormality at around 1:26 p.m. the same day and suspended operations such as withdrawals of virtual currencies and the reviewing of applications for new accounts.

The amount of lost cryptocurrency is believed to be the second-largest ever in Japan, exceeded only by the 58 billion yen stolen from the Coincheck exchange in Tokyo in a similar incident in 2018.

Tokyo police will probe Friday’s case as they received an inquiry from DMM Bitcoin, according to an investigative source.

The company said it deals in around 40 kinds of cryptocurrencies. Its report for the business year to March 2023 said the number of accounts stood at some 377,000.

Related coverage:

Shiba Inu dog that inspired “doge” meme, cryptocurrency Dogecoin dies

A seasoned cryptocurrency strategist who astutely predicted the recent downturn of Bitcoin shed some light on the potential trajectory of the infamous digital currency. If there’s any weight to the analyst’s forecast, we are possibly on the threshold of a far more substantial bearish phase in the cryptocurrency market.

Earlier in the week, the world of cryptocurrency was still basking in the glow of Bitcoin’s steady ascent beyond $70,000. Amidst the euphoria, a handful of analysts raised caution flags. Notably, the analyst known as Xanrox had taken to the renowned platform TradingView, warning of a probable nosedive in Bitcoin’s price. His augment is supported by several indicators seen recently.

Xanrox’s analysis suggested that Bitcoin’s boom could be short-lived, forecasting a crash in June rooted in the price activity observed in May. An interesting marker that gained the attention of Xanrox was the formation of what he referred to as an “FVGAP” at the $62,000 level. According to him, this could potentially trigger a bullish surge for Bitcoin down the line. The reason being, such gaps typically tend to be filled sooner rather than later, thereby indicating an impending retrace.

Furthermore, Xanrox infers from the Elliott Wave Theory that Bitcoin has completed its first upward or “impulsive” wave, Wave 1, and that Wave 2 is poised to be bullish in nature. Yet, Xanrox’s analysis expands beyond these waves, he highlights the formation of a corrective ABC pattern taking place.

Additionally intriguing is the observation of a diminutive red trend line on that chart that has already exhibited signs of waning strength. This falling trend line, added to a rising wedge pattern observed by Xanrox, acts as a strong indicator of an incoming drop in the digital currency’s value.

Xanrox’s analysis was posted on late May, and since then, Bitcoin has seen a considerable drop, now hovering below $68,000. This sharp downturn partially confirms the analyst’s prediction, thereby warranting an update on his post, outlining the potential future of Bitcoin’s pricing.

In his follow-up content, he points out yet another red trendline on the brink of a breakdown, following the first. The presence of two staggering lower trend lines paints a gloomy picture of Bitcoin’s future value. Furthermore, Xanrox indicates that Bitcoin’s price has formed a symmetrical triangle, which he predicts will also break down, leading to a fall in its price.

As for the degree of the anticipated plunge, Xanrox’s illustration signals a drop toward the $62,000 level, implying a decline of over 10%. Such a trend could cause turbulence across the wide cryptocurrency market. The analyst advises caution in the months to come, as he perceives summer as a potentially low volatility period for Bitcoin.

At present, Bitcoin is positioned a notch below $68,000 according to the latest data. In spite of suffering a significant loss of 2.7% in the past week, it’s worth noting that the cryptocurrency still showcases a promising growth of around 10.28% on a monthly basis.