Bitcoin Slips Below $64K As AI Tokens Surge; Anthony Scaramucci Says It's Still 'An Early-Adopting Technology'

BTC experienced a downturn on Monday, slipping below the $64,000 mark during European trading hours. The 1.2% decline to $63,400 follows a brief 5% rally

Bitcoin (BTC) slipped below the $64,000 mark on Monday as attention shifted to artificial intelligence (AI) tokens.

What Happened: BTC was trading down 1.2% over 24 hours at $63,400 by early afternoon in Hong Kong, having seen a brief 5% rally on Friday.

The rise was sparked by comments from U.S. Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, which hinted at a forthcoming monetary easing cycle.

This initially boosted risk assets as investors reacted to the prospect of more accessible funding.

Attention on Monday shifted to AI tokens, with traders in Asia piling into Chainlink (LINK) and Bittensor (TAO) ahead of Nvidia’s (NASDAQ:NVDA) highly anticipated earnings on Aug. 28.

Historically, Nvidia’s performance has served as a bellwether for the AI token space, with traders often positioning themselves ahead of the company’s earnings announcements.

FET recorded an 8.8% gain by early afternoon in Hong Kong, while TAO was up by 4.7%.

Analysts, citing expectations from FactSet, predict Nvidia’s upcoming earnings will be a blockbuster event, with earnings per share projected to soar by 141% to $0.65, and revenue is expected to reach $28.72 billion, a 113% increase year-over-year.

This would mark Nvidia’s fifth consecutive quarter of triple-digit growth, which comes as the Federal Reserve is expected to cut interest rates in September.

Anthony Scaramucci, the founder of SkyBridge Capital, shared his perspective on Bitcoin's current status and its potential future.

“I don't think Bitcoin is a store of value today. I think it's an early-adopting technology. It might get there, but there's a lot of regulatory headwinds.”

While acknowledging Bitcoin’s potential to evolve into a store of value, Scaramucci pointed out the significant regulatory challenges it faces.

“You've had a lot of things going on with Bitcoin as it relates to [its] regulatory headwinds,” he added, highlighting the uncertainties that continue to cloud its path forward.

Moreover, Scaramucci expressed his disapproval of certain market trends, particularly the rise of meme coins like Grimace Coin.

“The Grimace Coin thing is not something I'm a fan of. I have to totally understand why the SEC (U.S. Securities and Exchange Commission) wouldn't like that,” Scarammuci said.

He emphasized the need to focus on the positive developments in the cryptocurrency space, such as the advancements in Bitcoin’s payment systems and other Layer-1 technologies that have the potential to drive economic progress.

However, Scaramucci is optimistic about Bitcoin's broader acceptance, especially as financial advisors and registered investment advisors begin to advocate for its inclusion in investment portfolios.

“Wall Street is a selling machine and they haven't even amped up that selling machine yet,” he observed. “But just imagine tens of thousands of FAs (financial advisors) and RIAs out there explaining to people they need a position like this in their portfolio. So it's coming.”

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