NVIDIA CEO Jensen Huang Restores Confidence in the AI Sector, Will AI Cryptocurrencies Share the Sentiment?

TheNewsCryptoPublished on 2026-02-04Last updated on 2026-02-04

Abstract

NVIDIA CEO Jensen Huang has restored market confidence by dismissing concerns that AI will replace current technology, instead asserting that AI will coexist with and utilize existing tools. This comes amid a significant selloff in global tech stocks. While the broader crypto market remains sluggish, AI cryptocurrencies show mixed reactions: some, like TAO and NEAR, declined slightly, while others, including ICP and FIL, saw gains. Overall, the AI crypto sector's market cap rose slightly to $15.20 billion. Projections indicate high volatility ahead, with tokens like TAO potentially facing a correction, whereas NEAR may see an upswing. The general crypto market cap fell to $2.58 trillion.

Jensen Huang, NVIDIA CEO, has emphasized that AI would co-exist with current technology. Thereby restoring confidence of the market amid an increasing selloff. AI cryptocurrencies are currently down, but they could reverse the trend in the days to come. Overall, the crypto market remains sluggish as multiple macro factors enter the picture.

NVIDIA CEO on AI

NVIDIA chief Jensen Huang has dismissed concerns around the replacement of current software and tools by Artificial Intelligence, or AI. He called the idea illogical and clarified that, if anything, AI would continue using the tools and software used to create it.

Jensen further clarified that the latest breakthroughs in the sector entail usage of tools which are designed to be explicit, as reported by Reuters. NVIDIA’s chief’s statement comes at a time when stocks in India, Japan, & China plunged and recorded a hit in their respective value.

NIFTYIT dropped 6.3%, CSI Software Services Index lost 3%, and Japan’s Recruit Holdings fell by 9% while Nomura Research plunged by 8%. Also, at a time when Nvidia closed its Nasdaq at $180.34, down by 2.84%.

Mixed Reactions by AI Cryptocurrencies

AI cryptocurrencies have, so far, responded with mixed reactions. For instance, the leading AI token in terms of market cap, TAO, has lost almost 1.26% over the last 24 hours. NEAR, second on the list, has shed around 0.56% of its value during the same timeline. However, ICP and FIL have gained 1.73% and 1.54%, respectively.

The collective market cap has surged by 0.54% to $15.20 billion, and the 24-hour volume has jumped by 41.08% to $3.81 billion. All the values of AI cryptocurrencies are true at the time of writing this article.

Projections and Overall Crypto Market

TAO, for one, is estimated to have a 24.96% correction in the next month. This could take its value to around $145.28 amid a very high volatility of 12.15%. Similarly, NEAR has a high volatility of 12.10% but carries a bullish monthly upswing sentiment of 30.11% to approximately $1.56.

The crypto market, in general, is experiencing a sluggish run as most of the tokens are recording downturns in their respective values. BTC, a flagship crypto, has itself declined by 2.62% in the last 24 hours. The collective market cap of the segment is down by 2.06% to $2.58 trillion.

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The Changing Landscape: What Are Crypto VCs Experiencing?

Title: The Shifting Landscape of Crypto Venture Capital The era of dedicated crypto venture capital funds is undergoing a significant transformation. Once essential for navigating the sector's complexity and high risk, these specialized funds are now facing an identity crisis as the market matures. This shift mirrors historical patterns in other specialized investment classes like cleantech and SPACs, where initial information advantages dissipate as technologies become mainstream and integrated into existing industry frameworks. The article argues that crypto is reaching a critical inflection point, transitioning from a "building phase" to an "integration phase." Major players like Stripe, BlackRock, and Visa now engage with crypto not for its novel mechanics but as a foundational financial infrastructure. Their needs—regulatory compliance, banking partnerships, distribution channels—align with traditional fintech, a domain easily understood by large, generalist funds like Sequoia and Founders Fund. This evolution creates a "barbell effect" within the VC landscape. On one end are massive, diversified platforms that can incorporate crypto as one vertical among many. On the other are small, nimble funds focused on niche, experimental projects. The middle ground—medium-sized dedicated crypto funds—is being squeezed out. Their typical fund size makes it impossible to generate sufficient returns solely from early-stage crypto bets, yet they cannot compete with giants for later-stage deals. Consequently, leading crypto-native firms like Paradigm and Framework Ventures are expanding into AI, robotics, and other sectors, driven partly by LP pressure for better returns amid a broader VC DPI crisis. Others, like Dragonfly and a16z, have narrowed their crypto focus predominantly to financial infrastructure like stablecoins, reframing the sector's core narrative. For crypto entrepreneurs, this consolidation presents challenges. While generalist funds offer larger checks and broader resources, crypto projects now compete fiercely with AI for attention and capital within these firms. Furthermore, the long-term, non-commercial foundational work that built the ecosystem—funded by dedicated crypto VCs—is less likely to attract generalist capital focused on direct returns. The conclusion is that "crypto investor" as a standalone category is becoming obsolete, akin to "internet investor." Crypto is becoming a baseline infrastructure layer. The future will see a barbell structure: large-scale growth financing handled by generalist funds, while pioneering, speculative projects are funded by small, specialized vehicles. The dedicated crypto funds of the 2017-2021 boom, which incubated core infrastructure, are giving way to this new, bifurcated reality.

Foresight News2m ago

The Changing Landscape: What Are Crypto VCs Experiencing?

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As Consensus Accelerates, What Are Young Investors Betting On?

Title: As Consensus Forms Faster, What Are Young Investors Betting On? In the rapid evolution of tech investment, a new generation of young investors is navigating a landscape where AI, robotics, commercial aerospace, and quantum computing are advancing simultaneously. Traditional investment logic based on financial models is giving way to a need for deep technical understanding and the ability to act before industry consensus forms. An analysis of trends from the "WAIC FUTURE TECH" list of young investment leaders reveals key shifts in focus. The first major trend is the movement of AI from the digital screen into the physical world. Investment is shifting from large language models and chatbots towards embodied AI, robotics, AI hardware, and edge computing. While demonstrations generate excitement, the real challenge lies in achieving scalable, reliable, and cost-effective delivery in complex real-world environments like factories and logistics. Success depends not just on algorithms but on the integration of sensors, actuators, and control systems. Second, the competitive focus for large models is moving beyond raw capability toward building an "intelligence flywheel." The goal is to create self-reinforcing systems where user interaction generates data, improving the model, which in turn enhances the user experience and attracts more engagement. Companies that successfully embed AI into workflows to create these closed-loop systems can build lasting value that isn't easily erased by the next model upgrade. Third, facing a potential bottleneck in high-quality human-generated data, investors are looking at new underlying technologies. Reinforcement learning and self-play, as demonstrated by AlphaGo Zero, offer paths for AI to generate its own experience. Scientific foundation models, which aim to build general AI capabilities for fields like life sciences and materials discovery, represent a non-consensus direction that could unlock new frontiers of knowledge and data. Finally, in deep-tech areas like quantum computing, commercial aerospace, and space-based infrastructure, patient capital is essential. These fields have long, uncertain development and validation cycles involving complex engineering, supply chains, and regulations. Investment here requires a long-term view, focusing on foundational team capabilities and the eventual emergence of market demand, even if commercial returns are distant. Collectively, these trends illustrate how young investors are adapting to a new era. They are learning to make earlier, technically-informed judgments, balance hype with real-world viability, and provide the patient capital needed to build the deep-tech foundations of the future.

marsbit30m ago

As Consensus Accelerates, What Are Young Investors Betting On?

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Unlocking $100 Million in Liquidity? Pump.fun's New Policy Tests the 5-Minute Pump Technique

Foresight News, July 21 – Pump.fun has launched its new "BOOST" mode as the standard launch mechanism for new tokens. The core of BOOST is to address the issue of "dead liquidity." Historically, when a token migrates from its bonding curve to a liquidity pool, roughly 20% of its liquidity becomes permanently locked and unusable, a problem the platform estimates costs over $100 million annually. The new mechanism redirects this 20% of funds, which would have been locked, to instead be used for a 5-minute Time-Weighted Average Price (TWAP) buyback of the token immediately after migration. The purchased tokens are then permanently burned. For example, this means reserving 17.6 SOL for SOL pairs or about $2516 for USDC pairs at migration. This creates a short-term buying pressure and reduces the token's supply. The goal is to improve the immediate post-launch performance of memecoins, potentially increasing trader retention and transaction volume on the platform. However, critics warn this could lower the bar for token launches, encouraging low-quality projects, and that the brief 5-minute buy pressure might lead to sharper price crashes once it ends if followed by large sell-offs.

Foresight News39m ago

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What Signals Can Be Read from the Trading Data of India's Largest Asset Manager SBI's IPO?

India's largest asset manager, SBI Funds Management, successfully listed on July 21 with a nearly $10 billion IPO, attracting approximately 42 times subscription. However, the first-day closing price rose only about 6.3%, falling short of the 16% premium anticipated in the grey market. This signals robust demand for core Indian financial assets but also disciplined pricing, indicating the IPO market is selectively open for strong brands with clear growth narratives. The low reported underwriting fees, which led some global banks to reduce participation, highlight a shift in pricing power towards powerful issuers like SBI. Its strong brand, banking parent, and stable cash flows reduced reliance on traditional investment banking sales channels, with local brokers playing a larger role. This fee dynamic may not be replicable for weaker issuers. SBI's performance is seen as a key test for India's IPO pipeline, including potential future large listings like Reliance Jio and NSE. Its success with tempered gains sets a new price anchor: high-quality assets can launch, but excessive valuation premiums are constrained. The true measure of a sustained market reopening will be whether subsequent major offerings can proceed smoothly at reasonable valuations.

marsbit57m ago

What Signals Can Be Read from the Trading Data of India's Largest Asset Manager SBI's IPO?

marsbit57m ago

Can Japan Buy Growth with AI? Will the Bond Market Believe It?

Japan's cabinet has introduced the 2026 Basic Policy on Economic and Fiscal Management and Reform, shifting its primary fiscal target. The new framework moves away from the traditional annual primary balance goal and instead prioritizes a stable reduction of the debt-to-GDP ratio. This change is tied to a strategy of increased "responsible proactive fiscal" spending, aiming to boost long-term growth through investments in strategic sectors like AI, semiconductors, energy, and robotics. The government estimates total public and private investment in 62 key technologies could exceed 370 trillion yen by 2040. The market reaction has been mixed and cautious. While equity markets may respond to policy signals, bond markets are focused on fiscal credibility. Concerns center on whether the weakening of the clear primary balance anchor could lead to looser fiscal discipline. If investors doubt that these strategic investments will generate sufficient productivity gains, tax revenue, and nominal growth to outpace rising interest costs, they may demand higher yields on Japanese Government Bonds (JGBs). Recent volatility in the yen and JGB yields, with the 10-year yield briefly reaching 2.9%, reflects this skepticism. The success of this new framework hinges on two factors: whether Japan can achieve a nominal growth rate consistently higher than its long-term interest rates, and whether future budgets demonstrate disciplined control over bond issuance. The government's narrative is that strategic investment is essential to break Japan's cycle of low growth, aging, and labor shortages. However, the bond market will continuously assess the credibility of this plan, pricing the risk that it may represent fiscal expansion rather than a viable growth strategy.

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Can Japan Buy Growth with AI? Will the Bond Market Believe It?

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