The cryptocurrency market experienced a sharp downturn as artificial intelligence and big data-related tokens shed $4.69 billion in market capitalization over three days.

The market, which stood at $38.82 billion on Sept. 30, fell to $34.13 billion by Oct. 3, raising questions about the anticipated “UPtober” trend where investors hoped for a recovery in the market.

Despite October’s historical trend of being a favorable month for traders, this year is shaping up to be “Octo-bear” rather than “UPtober.”

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AI and big data tokens underwater

Among the leading AI and big data tokens, Near Protocol (NEAR) has experienced the steepest decline, with a 14.88% decrease over the past seven days. At the time of writing, the token is priced at $4.61.

Other top-performing tokens, like Bitensor (TAO) and Internet Computer (ICP), also experienced substantial price declines, shedding 9.37% and 13.35%, respectively, over the same time period.

This trend has affected the broader AI and big data market, with tokens like Render (RNDR) down 13.64% and Artificial Superintelligence Alliance (FET) down 16.68%.

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UPtober fails to deliver

Historically, October has been a period of strong gains and market stability, with many expecting Bitcoin (BTC) and altcoins to see upward momentum throughout the month.

However, 2024 has defied that trend, with nearly $5 billion wiped from the AI and big data token market cap just three days into October.

The broader crypto market has also seen a downward trend, driven by geopolitical factors such as the ongoing conflict in the Middle East, regulatory challenges and macroeconomic concerns.

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It’s not so bad after all

Despite the recent downturn, AI tokens are still performing significantly better than in July, when the total market cap was around $20 billion.

Considering the shift in pace from three months ago, the AI and big data token market is up over $13 billion, essentially trivializing the recent loss in market cap in October.

While the long-term trend for BTC in the fourth quarter and early 2025 seems positive, recent signs indicated there could be some short-term volatility in October.

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