Fetch.ai and other AI-related tokens have risen alongside the ChatGPT-driven artificial intelligence narrative. As a result FETUSD rallied more than 1,000% from the bottom and Google scrambled to launch a competitor called Bard.
After months of retreat, FET has dropped 17% intraday as negative news surrounding the launch of Bard took away from the AI hype. This could be just the beginning of a short-term trend change in Fetch.ai, and one that could lead to another 80% drop – despite a bull market.
Google Botches Open ChatGPT Rival Bard
Fetch.ai and other AI crypto tokens have outperformed the rest of the market on the heels of the larger AI craze. Everywhere, the media, social influencers, and everyday people are talking about the potential of ChatGPT.
Threatened by the sudden prominence and great promise of ChatGPT, Google hastily launched Bard – an AI-driven version of the chatbot. However, experts claim to have made factual errors in the first demo.
In the demo, Bard said the James Webb Space Telescope “took the first pictures of a planet outside our solar system.” That statement is not true, however.
The mistake quickly turned the flow of positive media coverage around AI as highly accurate, into negative headlines questioning AI’s validity.
Why Bull AI Can Destroy Fetch.ai Correction by 80%.
FETUSD closely mimics the charts of other AI-related assets, such as C3.ai Inc, which has only benefited from related cryptocurrencies so far. But positive sentiment can quickly change.
Fetch.ai has recovered more than 1,000% from the bear market and some signs indicate a new bull market is starting. During the last bull market, FET was also an early player, but still suffered not one, but two roughly 82% drawdowns.
80% drawdowns are common in a bull market | FETUSDT on TradingView.com
The withdrawal does not mean the end of the bull run in AI tokens or crypto as a whole. After the first over 80% correction, FET rallied over 2,000%. After the second 80% correction, the FET increases by 700%.
Rallies in FET are strong in general | FETUSDT on TradingView.com
ChatGPT has shown tremendous promise and Google will surely act together with Bard. Other tech companies are following the AI arms race.
Although the FET may be undergoing a strong correction, it should be viewed as a buying opportunity as the AI narrative is not going away.