Gate.io Blog Daily News | Fed's Inflation Concerns, Sandbox-Saudi Arabia Partnership, AI and Big Data Tokens on the Rise But Investors Divided on Future

Daily News | Fed's Inflation Concerns, Sandbox-Saudi Arabia Partnership, AI and Big Data Tokens on the Rise But Investors Divided on Future

09 February 10:17

[//]:content-type-MARKDOWN-DONOT-DELETE
![](https://gimg2.gateimg.com/blog/166563293266894988220221013-114826.jpeg)

## Crypto <a href="/price/dai-dai" target="_blank" class="blog_inner_link">Dai</a>ly Digest: Markets Dip with Fed Inflation Concerns, Sandbox Boosts on Saudi Arabia Deal, Coinbase CEO Against Staking Restrictions

Good morning, traders. It is now Thursday and like always, let’s get after it relentlessly. 🚀

On Thursday, stocks in Asia faced a decline due to recent remarks from Federal Reserve officials that led to investors rethinking their optimistic response to the central bank's commentary from the previous week. The S&P 500 and Nasdaq 100 both fell due to the Fed's stance and concerns over tech giant Alphabet's 7.7% drop in shares, with equity markets dropping in Japan, South Korea, and Australia, and Hong Kong's benchmark also showing a drop in futures.

The comments from four Fed officials, who spoke at separate events, reinforced the same message that the battle against inflation is not over yet. New York Fed President John Williams stated that the previous Fed's predictions of a 5.1% rise in interest rates still hold true, leading traders to revise their forecasts and some options traders even betting on the Fed's benchmark reaching 6% while some see the current market environment as challenging for both equities and fixed income.

Cryptocurrencies were mixed on Wednesday with <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> hovering around $23,000 and Ether losing 1.2% after gaining 3.5% the previous day. <a href="/price/the-sandbox-sand" target="_blank" class="blog_inner_link">The Sandbox</a> token (SAND) saw a significant boost with news of partnership talks with Saudi Arabia and was up 18%. Meanwhile, earnings reports showed CME Group remains confident in its reputation as a trusted marketplace for digital assets with 700 new digital asset customers added in January and an all-time high <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> options volume of $1.1 billion.

Among headlines, Coinbase (NASDAQ:COIN) shares dipped 2% as its CEO Brian Arms<a href="/price/tron-trx" target="_blank" class="blog_inner_link">TRON</a>g warned about a potential restriction on crypto staking in the US, which he says would be a "terrible path". SEC Chairman Gary Gensler raised concerns last year about the possibility of classifying tokens in proof-of-stake networks as securities. Arms<a href="/price/tron-trx" target="_blank" class="blog_inner_link">TRON</a>g emphasized the importance of encouraging companies to grow in the US, and clear rules in the crypto space, arguing that it is a matter of national security.

## Topic of the Day: Blockchain and AI - A Love-Hate Relationship in Crypto

The sudden interest in AI chatbots is driving the growth of tokens in the AI and big data space. Leading the way is Big Data Protocol (BDP), whose native token has increased by 1,400% in the last week, trading around $0.48, according to CoinGecko. This is followed by tokens such as SingularityDAO (SDAO) and SingularityNET (AGIX), which have seen gains between 170% to 200%. Other notable performers in the AI and data intelligence space include <a href="/price/fetch-ai-fet" target="_blank" class="blog_inner_link">Fetch.ai</a> (FET), Measurable Data (MDT), Matrix AI Network (MAN), Deepbrain Chain (DBC), Oraichain (ORAI), and Vectorspace AI (VXV), with price increases ranging from 75% to 95%.

The recent hype around models like ChatGPT, StableDiffusion, and DALL-E has fueled the speculation for crypto projects in the AI niche. Many of these projects offer blockchain-based data analytics and a distributed infrastructure for decentralized AI and data science models. SingularityNET incentivizes individuals to contribute data that improves AI models and rewards them with tokens. Projects like DeepBrain Chain reduce the cost of training AI models by allowing users to contribute data and processing power on a distributed network.

While some traders are investing in these tokens, not everyone is convinced. Lead developer at <a href="/price/fantom-ftm" target="_blank" class="blog_inner_link">Fantom</a> (FTM), Andre Cronje, says that blockchain and AI are not complementary and that anyone jumping on the AI bandwagon is simply doing it for a "pump and dump" reason. He believes that projects pivoting into AI are likely running out of ideas and are "dead in the water." He also says that even if blockchain could handle the required throughput for neural net needs, it still wouldn't improve AI, and vice versa.

## Big Data Protocol (BDP) $0.45699 (-5.58%) - Neutral Outlook

**Overview:**

- ***Closest <a href="/price/dai-dai" target="_blank" class="blog_inner_link">Dai</a>ly support zone: 0.4596 - 0.3745***
- ***Closest <a href="/price/dai-dai" target="_blank" class="blog_inner_link">Dai</a>ly resistance zone: 0.4768 - 0.5745***
- ***Key Level: 0.259 (Monthly Low of May. 2022)***

![](https://gimg2.gateimg.com/image/article/1675914123Untitled0209.png)

Since Feb. 01, BDP has risen over 1530%, fueled by speculations on the future of AI. On the <a href="/price/dai-dai" target="_blank" class="blog_inner_link">Dai</a>ly timeframe, the latest leg up started from Feb. 06 saw rejection from a major resistance level of 0.672 [Weekly Low between May. 10 - 17, 2021], and is currently facing retracement. The golden ratio of 61.8% stands at 0.279 which corresponds with a major support level of 0.259 [Monthly Low of May. 2022].

**<a href="/price/dai-dai" target="_blank" class="blog_inner_link">Dai</a>ly Resistance zones**

1. 0.4768 - 0.5745
2. 0.6720 - 0.8386
3. 1.0483 - 1.1226

**<a href="/price/dai-dai" target="_blank" class="blog_inner_link">Dai</a>ly Support zones**

1. 0.4596 - 0.3745
2. 0.3660 - 0.3025
3. 0.2790 - 0.2281

<div class="blog-details-info">
<div>Author:** Peter L.**, <a href="/price/gate-gt" target="_blank" class="blog_inner_link">Gate</a>.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*<a href="/price/gate-gt" target="_blank" class="blog_inner_link">Gate</a>.io reserves all rights to this article. Reposting of the article will be permitted provided <a href="/price/gate-gt" target="_blank" class="blog_inner_link">Gate</a>.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

ETH/USDT -3.18%

BTC/USDT -0.32%

GT/USDT -0.81%

BDP/USDT -2.31%

Crypto Daily Digest

Topic of the Day: Blockchain and AI - A Love-Hate Relationship in Crypto

Neutral Outlook

Unbox Your Luck and Get a $6666 Prize

Daily News | Fed's Inflation Concerns, Sandbox-Saudi Arabia Partnership, AI and Big Data Tokens on the Rise But Investors Divided on Future

Select language and region

Fiat Currencies