Bitcoin's recent flash crash below $99,000 has caused a deeper drawdown for other assets, particularly impacting the AI agents and DeFAI narratives. Both narratives had lost momentum in January despite initial expectations for strong gains in 2025. The AI token space as a whole experienced a correction, with infrastructure AI and older shared computing projects losing over 13% in market capitalization. DeFAI, a newer category of tokens, also saw a decline of more than 21% in market capitalization within 24 hours. The loss of enthusiasm for DeFAI follows a general weakness in the AI agent sector, which has also experienced corrections. Traders are now turning back to infrastructure tokens and meme tokens, as well as some DeFi tokens.



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