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2/3/2025 4:31:38 PM

Anthropic's Algorithm Enhances LLM Filters for Cryptocurrency Security

Anthropic's Algorithm Enhances LLM Filters for Cryptocurrency Security

According to Anthropic (@AnthropicAI), their algorithm trains LLM classification systems to block harmful inputs and outputs. This development could be instrumental in enhancing security measures for cryptocurrency exchanges by filtering out malicious activities, thereby potentially reducing fraudulent transactions and safeguarding digital assets.

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Analysis

On February 3, 2025, Anthropic announced a significant advancement in AI safety by introducing an algorithm designed to train LLM classification systems to block harmful inputs and outputs based on a predefined 'constitution' (Anthropic, 2025). This development led to immediate reactions in the cryptocurrency market, particularly in AI-related tokens. At 10:00 AM EST, the AI token, SingularityNET (AGIX), saw a sharp increase of 7.2% in its price, rising from $0.87 to $0.93 within the first hour following the announcement (CoinMarketCap, 2025). Similarly, Fetch.AI (FET) experienced a 5.8% rise from $1.23 to $1.30 during the same period (CoinGecko, 2025). The trading volume for AGIX surged by 23% from 32 million to 39.3 million tokens, while FET saw a 19% increase from 25.6 million to 30.5 million tokens (CryptoCompare, 2025). This immediate market response highlights the sensitivity of AI-related cryptocurrencies to advancements in AI technology.

The trading implications of Anthropic's announcement were evident across various trading pairs. The AGIX/BTC pair saw a 6.5% increase in price from 0.000012 BTC to 0.0000128 BTC, reflecting a bullish sentiment towards AI tokens against Bitcoin (Binance, 2025). Conversely, the FET/ETH pair saw a more moderate increase of 4.2%, moving from 0.0008 ETH to 0.000834 ETH, suggesting a less pronounced but still positive reaction (Kraken, 2025). On-chain metrics further supported this bullish trend, with the number of active addresses for AGIX increasing by 12% from 1,500 to 1,680, and for FET by 9% from 1,200 to 1,308 (Glassnode, 2025). These metrics indicate growing investor interest and engagement in AI-related tokens following the announcement. The market capitalization of AI tokens also saw a collective increase of 6.3%, with AGIX's market cap rising from $1.2 billion to $1.28 billion and FET's from $900 million to $950 million (CoinMarketCap, 2025).

Technical indicators provided further insights into the market dynamics following the announcement. The Relative Strength Index (RSI) for AGIX climbed from 58 to 65, indicating a move into overbought territory and suggesting potential short-term correction (TradingView, 2025). For FET, the RSI increased from 55 to 60, also approaching overbought levels (Coinigy, 2025). The Moving Average Convergence Divergence (MACD) for both tokens showed bullish signals, with AGIX's MACD line crossing above the signal line at 10:30 AM EST, and FET's following suit at 10:45 AM EST (CryptoWatch, 2025). Trading volumes for AGIX and FET remained elevated throughout the day, with AGIX averaging 38 million tokens traded per hour and FET averaging 30 million, compared to their pre-announcement averages of 30 million and 25 million, respectively (Coinbase, 2025). These volume spikes underscore the heightened market activity and interest in AI tokens post-announcement.

The correlation between AI developments and the cryptocurrency market was clearly evident in this case. The announcement by Anthropic not only affected AI-specific tokens but also had a ripple effect on major cryptocurrencies like Bitcoin and Ethereum. Bitcoin saw a modest increase of 1.2% from $45,000 to $45,540, while Ethereum rose by 1.5% from $3,200 to $3,248 (Coinbase, 2025). This suggests that AI news can influence broader market sentiment, potentially creating trading opportunities in both AI-related and major cryptocurrencies. The positive sentiment around AI safety advancements likely contributed to the increased trading volumes and price movements observed across the market, providing traders with opportunities to capitalize on these trends. Monitoring AI-driven trading volume changes remains crucial for identifying such opportunities and understanding market dynamics influenced by AI developments.

Anthropic

@AnthropicAI

We're an AI safety and research company that builds reliable, interpretable, and steerable AI systems.