Crypto crash today: why altcoins like Dogecoin, Pi Network, Cardano are falling

A crypto crash is happening today, with Bitcoin and top altcoins like Dogecoin (DOGE), Pi Network (PI), Cardano (ADA), Aster (ASTER), and Ondo (ONDO) falling by over 5%. The market cap of all tokens dropped by over 4% in the last 24 hours to $2.93 trillion. This article explores why the crypto market crash is happening today.

Crypto crash is happening amid risk-off sentiment 

One main reason why the crypto market is happening is that investors have embraced a risk-off sentiment as the artificial intelligence (AI) jitters continued.

These jitters explain why top indices like the Dow Jones, S&P 500, and Nasdaq 100 continued to drop on Monday. The Dow Jones fell by 105 points, while the S&P 500 and Nasdaq 100 dropped by 40 and 20 basis points, respectively.

Top AI companies like Nvidia, Broadcom, CoreWeave, and Oracle continued their downtrend, which has now erased over $1.5 trillion in value in the past few weeks alone.

There are risks that the AI bubble is bursting, a move that would have an impact across other asset classes like cryptocurrencies and bonds because of the correlation that exists among them.

Jitters in the AI industry accelerated last week when Oracle published its results. While its revenue and RPO growth continued growing, its negative free cash flow and elevated debt levels raised concerns among investors.