AI Tokens Soar Ahead of SpaceX IPO Amid Warnings of Dead-Cat Bounce

Altcoins have surged in recent days, with Worldcoin (WLD), NEAR Protocol (NEAR), and Bittensor (TAO) leading the charge. The rise is attributed to two main factors: the upcoming SpaceX IPO and the growing interest in AI-themed cryptocurrencies.

SpaceX's acquisition of xAI, an AI lab founded by Elon Musk, has given a boost to AI-related tokens. Worldcoin, for example, has more than doubled in value over the past 30 days, while NEAR Protocol has gained nearly 40% during the same period.

However, some analysts are warning of a potential dead-cat bounce. Bitcoin has been trading at year-to-date lows and remains down roughly 11% on the week. Arthur Hayes, a well-known investor, has already trimmed his stack ahead of the listing, taking profits on NEAR that signal fading conviction at the top.

Analyst Michael van de Poppe suggests that a range-bound Bitcoin gives altcoins room to outperform, but others are more cautious. The competition for capital is adding further risk, with institutional money flowing into traditional listings and away from crypto.