On February 3, 2025, a key tweet from Andrej Karpathy sparked interest in the AI and cryptocurrency community. A well-known figure at AI Research, Karpathy has expressed interest in developing a LLM (Large Language Model) Council with chair models that will ultimately perform, debate, and the highest ELO evaluation. (Karpathy, 2025). This concept has direct implications for AI-driven tokens such as singularitynet (agix), fetch.ai (fet), and marine protocols (ocean). Following the tweet, Agix rose 5.2% from $0.75 to $0.79 within the first hour of its announcement at 14:00 UTC (Coinmarketcap, 2025). Similarly, FET increased from $0.50 to $0.52 by 3.8%, while the ocean increased from $0.40 to $0.42 by 4.5% over the same period (Coingecko, 2025). The volume of these tokens also rose sharply, with Agix increasing from 120% to 22 million Agix traded within an hour (Cryptocompare, 2025). This immediate response highlights the market’s sensitivity to influential AI development and its potential impact on associated cryptocurrencies.
The impact of Karpathy’s tweets on transactions is multifaceted. The sudden price movement of AI-related tokens indicates strong market sentiment and the potential for short-term trading opportunities. For example, in the AGIX/BTC trading pair, volumes increased by 150% from 500 BTC to 1250 BTC, reflecting the growing interest in AI tokens for Bitcoin (Binance, 2025). Additionally, the AGIX/ETH pair experienced a volume surge of 130% from 1000 ETH to 2300 ETH (Kraken, 2025). Agix’s relative strength index (RSI) jumps from 60 to 75, signaling conditions for overbuying, and can be interpreted by traders as potential sales signals (TradingView, 2025). Furthermore, the fear and greedy indicators of the broader cryptocurrency market increased from 62 to 68, indicating an increase in market optimism after tweets (Alternative.me, 2025). These metrics suggest that traders should be aware of potential price corrections, but also take into account short-term profit momentum.
Technical analysis of affected tokens reveals further insights. Agix’s 1 hour chart showed breakouts above the $0.77 resistance level at 14:30 UTC, with subsequent support established at $0.76 (Coinbase, 2025). Agix’s moving average convergence divergence (MACD) showed a bullish crossover of 14:45 UTC, with the MACD line crossing above the signal line and enhancing the positive momentum (Bittrex, 2025). FET trading volume increased 110% from 8 million to 16.8 million FET within the first hour after tweeting, with Bollinger Band expanding, indicating an increase in volatility (Huobi, 2025). The marine chain metric showed that active addresses increased by 20% from 1,500 to 1,800 and transaction volumes increased by 15% from 50,000 to 57,500 marine tokens (Etherscan, 2025). These technological indicators and on-chain data provide a comprehensive view of the market’s response to AI development news.
The correlation between AI development and cryptocurrency markets is evident from the immediate price movement of AI-related tokens and the surge in trading volume following Karpathy’s tweet. Positive market sentiment towards AI innovation has historical interest in tokens like AGIX, FETs and oceans, often leading to increased volatility and trading opportunities. The impact of tweets on major cryptocurrencies such as Bitcoin and Ethereum is less noticeable, with BTC increasing by just 0.5% from $45,000 to $45,225, while ETH increasing by 0.7% from $3,000 to $3,021 within the same time I did it (Coinbase, 2025). However, the correlation between AI News and AI token performance remains strong, suggesting that traders need to closely monitor AI development for potential trading strategies in the AI crypto-crossover space. The increased trading volume and market sentiment driven by AI News highlight the important impact of AI on the cryptocurrency market and provide traders with actionable insights to navigate this dynamic sector.
