Bearish Nvidia Options Bets Drive Losses in AI Crypto Tokens.

Crypto tokens tied to artificial intelligence have taken a hit over the past day, underperforming major digital assets as options traders appear to be bracing for potential downside in Nvidia stock.

While Bitcoin (BTC) edged up 0.6% to trade at $85,500, several AI-focused cryptocurrencies saw notable declines. Bittensor’s TAO slipped 3.6% to $239, Render Network’s RNDR dropped 1.7% to $3.93, and other tokens such as FET, SEI, and GRT each fell by about 2%, according to CoinGecko.

The dip coincides with a flurry of bearish bets in the options market for Nvidia (NVDA), the semiconductor giant central to the AI boom. Convex Value flagged heavy trading in short-dated, out-of-the-money put options — particularly at strike prices of $100, $85, $60, and even $50, with expirations ranging from April 17 to May 16.

“Unusual volumes are building in those deep out-of-the-money strikes,” a Convex analyst told CoinDesk. “This looks like a hedge — protection against a sharp drop.”

Put options, especially those priced well below the current spot level of $110, often serve as insurance in volatile or uncertain conditions. Their sudden rise may suggest growing caution among traders, or even that some expect an adverse development affecting Nvidia or broader tech sentiment.

Adding to the intrigue, Substack-based market research firm Merlin Capital commented, “Someone’s positioning for a surprise,” in a post on X.

Nvidia had just announced plans to begin manufacturing its AI supercomputers domestically, which many see as a bullish long-term signal. Still, the market’s short-term mood appears mixed — and the weakness in AI-themed crypto tokens suggests some traders are pulling back amid jitters in the broader AI narrative.