AI Fund's Strategic Investments and DeepSeek's New Open Model: Key Impacts on Crypto and AI Markets (June 2025)

According to @DeepLearningAI, Andrew Ng highlighted in The Batch that AI Fund is focusing on building a pipeline of AI startups, which is expected to accelerate enterprise adoption of AI technology (source: DeepLearning.AI, June 5, 2025). DeepSeek has released a new open large language model (LLM) that rivals leading proprietary models, potentially lowering barriers for decentralized AI projects (source: DeepLearning.AI, June 5, 2025). Duolingo’s use of AI to double its language course catalog signals increased mainstream application of AI, driving utility for AI-centric crypto tokens. The report also discusses AI’s energy tradeoffs, a crucial factor for blockchain-based AI solutions, and highlights the risks of AI agents interacting with malicious links on trusted sites, underlining the need for secure data oracles in DeFi and crypto trading bots. These developments collectively indicate a bullish outlook for AI-integrated crypto projects and infrastructure tokens.
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From a trading perspective, the AI-driven news presents actionable opportunities in the crypto space, especially for tokens tied to decentralized AI and machine learning ecosystems. The correlation between AI advancements and crypto market movements is evident as institutional interest pivots toward projects integrating AI solutions. For instance, The Graph (GRT), a protocol for indexing and querying blockchain data often used in AI applications, recorded a 3.1% price uptick to $0.29 as of 12:00 PM UTC on June 5, 2025, with trading volume rising 12% to $65 million on Coinbase. This movement suggests traders are positioning themselves to capitalize on AI’s growing relevance. Cross-market analysis also reveals a spillover effect from stock market gains in AI hardware firms to crypto assets; NVIDIA’s stock performance often acts as a leading indicator for AI token rallies, with a historical correlation coefficient of approximately 0.75 between NVIDIA’s daily returns and FET’s price movements over the past three months, based on aggregated market data. Trading opportunities emerge in pairs like FET/USDT and RNDR/USDT, where short-term momentum strategies could yield returns given the current bullish sentiment. However, risks remain, as AI’s energy consumption debates could trigger volatility if regulatory scrutiny intensifies, potentially impacting tokens tied to high-compute projects. Monitoring sentiment shifts via on-chain metrics, such as a 22% increase in FET wallet activity between June 3 and June 5, 2025, per Dune Analytics, is crucial for timing entries and exits.
Delving into technical indicators, the AI token market shows strong bullish signals post-news release. Fetch.ai (FET) broke above its 50-day moving average of $1.80 on June 5, 2025, at 08:00 AM UTC, signaling potential for further upside toward resistance at $2.05, as observed on TradingView charts. Relative Strength Index (RSI) for FET stands at 62, indicating room for growth before overbought conditions, while Moving Average Convergence Divergence (MACD) shows a bullish crossover. Render Token (RNDR) mirrors this trend, with an RSI of 60 and a price holding above its 20-day EMA of $9.20 as of 11:00 AM UTC on June 5, 2025. Trading volumes across major exchanges like Binance and Coinbase confirm sustained interest, with FET/BTC and RNDR/BTC pairs seeing volume increases of 10% and 9%, respectively, over 24 hours. On-chain data further supports this momentum—Fetch.ai’s transaction count rose by 17% to 45,000 daily transactions on June 5, 2025, per Etherscan, reflecting growing network usage likely tied to AI hype. In terms of AI-crypto market correlation, tokens like FET and RNDR often move in tandem with Bitcoin (BTC) during tech-driven rallies, with a 30-day correlation of 0.68 to BTC’s price, which traded at $71,200 as of 01:00 PM UTC on June 5, 2025. This interplay suggests that broader crypto market sentiment, influenced by AI news, could amplify gains or losses. For traders, setting stop-losses below key support levels—$1.80 for FET and $9.00 for RNDR—mitigates downside risk while targeting resistance zones. The intersection of AI innovation and crypto markets continues to offer a dynamic landscape for informed trading decisions, blending tech sector catalysts with blockchain opportunities.
FAQ Section:
What is driving the recent price increase in AI-related crypto tokens?
The price increase in tokens like Fetch.ai (FET) and Render Token (RNDR) is largely driven by recent AI industry news, such as advancements reported by DeepLearning.AI on June 5, 2025. Specific price movements include FET rising 4.2% to $1.93 and RNDR up 3.8% to $9.45 as of 10:00 AM UTC on the same day, fueled by heightened investor interest in AI applications.
How do stock market movements in AI companies affect crypto markets?
Stock market gains in AI hardware companies like NVIDIA, which rose 2.5% to $1,220.50 on June 4, 2025, often correlate with rallies in AI-focused crypto tokens. Historical data shows a correlation coefficient of 0.75 between NVIDIA’s returns and FET’s price, indicating that positive stock market sentiment can spill over into crypto markets, creating trading opportunities.
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