AI tokens have experienced a significant decline, dropping 24.9% over the past month and 74.6% year-to-date, as market sentiment shifts towards caution. The Fear and Greed Index indicates growing unease among investors, contributing to the downturn. Meanwhile, altcoins identified as ones to watch have collectively fallen by 34%, reflecting broader market challenges. The overall cryptocurrency market cap stands at $1.16 trillion, highlighting a divergence between weak labor data and rising equity markets, as reported by Alphractal. This market environment has intensified fears of a potential bubble, impacting investor confidence in AI-related digital assets.