FET Token Drops 5.6% Amid Broad Market Risk Aversion and AI Skepticism

The Artificial Superintelligence Alliance (FET) token experienced a decline of approximately 5.6% over the past 8 hours, driven by a combination of risk aversion in the crypto market and skepticism towards AI-related assets.

The total market cap decreased by about 2.3% over the last 24 hours, with FET experiencing a more significant drop of around 9.8%. The CMC Fear and Greed Index was in 'Fear' territory at 36, indicating a defensive market sentiment and a bias towards selling risk assets.

High-profile investors have reduced their exposure to AI and warned about potential corrections, cooling the AI hype cycle and raising the perceived risk of AI-themed assets. This environment makes it easier for traders to justify shorting or staying out of AI tokens when the market is volatile, contributing to FET's underperformance.