Core Insights - The crypto market experienced a significant sell-off, with Bitcoin (BTC) closing below the 50-week EMA for the first time in 2023, indicating buyer exhaustion and holder capitulation [1][5] - The AI sector's market capitalization fell by 18.7% to $24.2 billion, marking a level not seen since April 2025 [3][5] - Only 13% of the top 100 AI tokens managed to maintain positive performance during the downturn, highlighting the overall weakness in the sector [5] AI Market Recap - The AI sector suffered a notable decline, with all top 20 AI tokens in the red, although Bittensor (TAO) experienced a relatively modest decline of 14.1% [4][5] - The best-performing AI tokens included UnifAI Network (UAI) with a gain of 26.7%, Nillion (NIL) up by 16.1%, SUPRA (SUPRA) increasing by 14.5%, and Tagger (TAG) rising by 15.1% [6] - Conversely, several projects faced severe losses, with some tokens dropping over 30%, while the privacy coin sector remained the only one in the green [7] Market Dynamics - The correlation of BTC and the broader crypto market with equities is more pronounced on the downside, suggesting a shift in market dynamics [1] - The AI sector is currently the 15th-worst-performing sector among 24 tracked by Artemis, indicating significant challenges within the industry [7]