AI-Linked Crypto Assets See Losses Mount as Bearish Nvidia Options Trades Emerge.

Tokens linked to artificial intelligence (AI) have experienced greater losses compared to the largest cryptocurrencies in the past 24 hours, with the downturn coinciding with unusual activity in Nvidia (NVDA) put options. On Monday, Nvidia revealed its plans to begin constructing AI supercomputers within the United States, a move that has captured the attention of traders.

While Bitcoin (BTC), the world’s largest cryptocurrency by market value, gained 0.6% to reach $85,500, tokens tied to blockchain AI projects, such as TAO (Bittensor), saw notable declines. TAO dropped 3.6%, settling at $239, while Render Network’s RNDR token fell 1.7%, trading at $3.93, according to CoinGecko. Other AI-related tokens like FET, SEI, and GRT each lost around 2%.

A surge in Nvidia put options was observed on Monday, according to data from Convex Value. The majority of the activity was concentrated in short-term put options with a $100 strike price, set to expire on April 17, April 25, and May 2. Further trading occurred in $60 puts expiring on April 17 and $50 and $85 strike puts scheduled for May 16.

Convex Value noted the activity in these so-called out-of-the-money options, where strike prices are significantly lower than Nvidia’s current market price of $110, as highly unusual. “These appear to be protective plays,” said an analyst at the platform, adding that the trades may be designed to hedge against potential downside risk.

Put options are commonly used by traders as a hedge against possible market declines, or to profit from a drop in the asset’s price. Given the increased activity, some speculate that there could be insider knowledge driving these protective trades.

“Someone knows something,” remarked Merlin Capital, an analytics service, on X, suggesting that the spike in Nvidia put options could signal a market shift or potential move by the company.