by Enoch Mwathwa
The crypto market opened the new year with strong momentum. Prices rebounded across major assets. AI-focused tokens and Dogecoin led the gains. Market sentiment improved after Elon Musk praised Nvidia CEO Jensen Huang. That brief exchange reignited hype around AI, robotics, and crypto convergence.
Elon Musk’s Nvidia Praise Reignites AI-Crypto Optimism
The rally followed a short but powerful moment on X. Elon Musk responded to a post highlighting Jensen Huang’s praise for Musk and Tesla’s Optimus robot. Musk replied, “Jensen rocks!” That comment quickly spread across crypto circles.
Jensen rocks! https://t.co/nIoGP8rMmm
— Elon Musk (@elonmusk) January 1, 2026
Earlier, Huang described Musk as an extraordinary engineer. He also confirmed continued collaboration between Nvidia and Musk-led ventures. Huang stressed that humanoid robots now sit close to mass production. He called the sector a future multi-trillion-dollar industry.
Moreover, Nvidia has already backed Musk’s vision. The company joined a $20 billion funding round for xAI. Huang previously said he wants to be involved in nearly everything Musk builds. Each interaction adds fuel to AI narratives. Traders reacted fast.
Historically, such moments lift AI tokens and Dogecoin. The market often prices hype before fundamentals. This time followed the same pattern. Buyers stepped in across AI-linked assets.
AI Tokens Post Sharp Gains as Momentum Returns
AI-focused coins posted broad gains within hours. Story (IP) surged over 32% in a day. Its weekly gain crossed 50%. Render, Filecoin, Injective, and Turbo all posted double-digit moves.
Chainlink, Near Protocol, and Bittensor also climbed. Analysts pointed to renewed interest in decentralized AI infrastructure. Investors favor compute networks, data layers, and AI agents. These themes gained traction late last year.
Bittensor jumped more than 8%. Price traded near $235 after touching $237. Volume rose alongside speculation around a Grayscale Bittensor ETF. That filing added a fresh catalyst. Institutional interest helped reinforce the move.
Despite the surge, traders stayed selective. Capital rotated into high-liquidity AI names. Smaller tokens lagged. Still, momentum clearly shifted.
Dogecoin Rallies as Traders Chase Risk Assets
Dogecoin joined the rebound with force. Price jumped over 8% in 24 hours. DOGE price traded near $0.1275 after breaking recent resistance. Volume climbed more than 35%.
Musk’s involvement always draws attention to DOGE. Even indirect references tend to spark rallies. This move aligned with broader risk-on sentiment. Traders chased beta as confidence returned.
The total crypto market cap rose nearly 2%. It reached $3.1 trillion. Bitcoin and Ethereum also stabilized. That helped altcoins recover.
Still, volatility remains high. Traders now watch follow-through. Sustained gains depend on macro signals and liquidity. For now, sentiment favors the bulls. AI coins and Dogecoin reclaimed center stage.
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