AI Agents in Crypto Markets: A Growing Concern for Manipulation and Volatility

The intersection of artificial intelligence (AI) and cryptocurrency markets has led to concerns about market manipulation and volatility. AI agents, which can observe markets, make decisions, and execute transactions without human input, have become increasingly sophisticated. They can adapt strategies, move capital across platforms, and interact with both on-chain and off-chain services.

Crypto markets are particularly vulnerable due to their 24/7 trading, fragmented exchanges, and permissionless decentralized finance (DeFi) systems. This combination of factors allows AI agents to coordinate actions across multiple platforms, amplifying market risks.