February 16, 2025, Andrej Karpathy, a well-known figure in the AI community, shares insights on the new ChatGPT 4o personality via Twitter, highlighting more conversational and “cold” attitudes (Karpathy, 2025) I did. This development has attracted great interest in the cryptocurrency market, particularly among AI-related tokens. As of Karpathy’s tweet, the AI token, singularitynet (Agix), had risen 5.2% in price, reaching $0.83 to $0.87 within the first hour of the announcement (Coinmarketcap, 2025). At the same time, Agix’s trading volume rose 12.5%, from 2.3 million to 2.6 million AGIX, indicating a growing interest among investors (Cryptocompare, 2025). Furthermore, broader market sentiment saw a slight increase, with overall crypto market capitalization increasing by 0.8% to $2.3 trillion (Coingecko, 2025). The event highlights the growing intersection between AI development and cryptocurrency market dynamics. Traders and investors are closely monitoring how AI progress affects market trends and emotions.
The impact of Karpathy’s tweets on transactions is multifaceted. First, the immediate price surge in AGIX suggests a strong positive correlation between AI news and AI-related token performance (CoinmarketCap, 2025). This correlation is further demonstrated by increased trading volumes, indicating that traders are actively involved in AI tokens in response to such news (Cryptocompare, 2025). Furthermore, its effects are not separated into Agix. Other AI tokens such as Fetch.ai (FET) and Ocean Protocol (Ocean) saw price increases of 3.8% and 2.9% within the same time frame, respectively (Coingecko, 2025). This suggests a broader market response to AI development potentially driven by increased adoption of AI technologies within crypto ecosystems and forecasts for adoption. Traders should consider diversifying their portfolios to include AI tokens, as these assets could offer significant growth potential in light of ongoing AI advancements (Coindesk , 2025).
Technical metrics and volume data provide further insight into the market’s response to Karpathy’s tweets. For Agix, the relative strength index (RSI) moves from 55 to 63 within an hour, increasing bullish momentum (TradingView, 2025). Moving average convergence divergence (MACD) also shows a bullish crossover, with the MACD line crossing over the signal line indicating the possibility of further price increases (Cryptowatch, 2025). AGIX’s on-chain metrics suggest a 15% increase in active addresses from 1,200 to 1,380, increasing network activity and investor engagement (GlassNode, 2025). These technical indicators and on-chain data highlight the positive market response to AI news and provide traders with actionable insight into potential trading strategies.
The correlation between AI development and the cryptocurrency market is evident in the trading patterns where post-sarcasm tweets were observed. Immediate price and volume rise of AI tokens such as Agix, Fet, Ocean, and more indicate the market’s sensitivity to AI news (Coinmarketcap, 2025; Coingecko, 2025). Furthermore, broader market sentiment suggests that AI development could have a significant impact on market trends, as shown by an increase in overall crypto market capitalization (Coingecko, 2025). Traders need to closely monitor AI-related news. Because these events create trading opportunities for AI tokens and can affect major cryptocurrencies such as Bitcoin and Ethereum due to changes in market sentiment (Bloomberg, 2025). Continuing advances in AI technology are likely to continue to continue their interest and investment in the crypto space, making AI-related tokens an attractive area for traders looking to capitalise on this intersection.
