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Learning & News => News related to Crypto => Topic started by: TomPluz on January 31, 2025, 07:14:40 AM

Title: Why DeepSeek crashed your Bitcoin and crypto?
Post by: TomPluz on January 31, 2025, 07:14:40 AM

(https://cdn.i-scmp.com/sites/default/files/styles/1020x680/public/d8/images/canvas/2025/01/01/edb65604-fdcd-4c35-85d0-024c55337c12_445e846b.jpg?itok=En4U4Crq&v=1735725213)



In recent days, DeepSeek was in the news and seems to me there is a huge interest on this beast most especially in the Western World. DeepSeek  (https://www.bbc.com/news/articles/c5yv5976z9po)is a Chinese-made artificial intelligence (AI) model, this shot to the top of Apple Store's downloads, stunning investors and sinking some tech stocks.

While this got no direct connection to the world and market of cryptocurrency, DeepSeek nevertheless made a significant impact on the cryptocurrency and tech markets so we should be wondering what it is on this thing and what does it mean for China and the rest of the world?

Quote
Cryptocurrencies and the shares of crypto-related firms like MicroStrategy also fell, even though crypto has “nothing to do” with DeepSeek, SMARDEX decentralized exchange founder Jean Rausis told MarketWatch.

Rather, crypto was simply a victim of broader market sentiment. JP Richardson, CEO of crypto exchange Exodus, told Fortune that crypto is a “risk-on” asset and “When there are any shakes or fears in the stock market” such as the appearance of an unexpected AI model, “typically, you see a correlation in the fall of price in the stock market, and that of cryptocurrency and Bitcoin.”


Source: https://cointelegraph.com/news/deepseek-crash-bitcoin-crypto


So how should we process the coming in of DeepSeek? Will this be just another manifestation that we can entering the China century...as it may continue to disrupt many industries into the future and has become a major factor even in an industry that China does not want to involve with?




Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: bhadz on January 31, 2025, 07:40:53 AM
It is visible that China is trying to conquer whatever they can. From our lands, to Chinese debt trap, to smartphones, EVs, to anything related to technology which is with Deepseek. And now, there's another release from a chinese company Alibaba with another Ai technology telling that it is much better than Deepseek. The Quen 2.5 max from them. So, there is now a rivalry in there and Deepseek isn't even existing for too long. The exploration for AI technologies are starting to emerge.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: ABCbits on January 31, 2025, 10:42:52 AM
Specific to cryptocurrency and it's price, i wouldn't worry about DeepSeek since IMO it's just another example of "Correlation does not necessarily imply causation". But if people going to be skeptical with DeepSeek, IMO they should do same thing with OpenAI when their AI isn't even open source (while DeepSeek AI appear to be open source).
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: hugeblack on January 31, 2025, 11:58:20 AM
A few months ago, some analysts were trying to link US stocks to the price of Bitcoin, and almost everyone who wrote this article wanted to get some free views using the word DeepSeek or controversial analyses about artificial intelligence, but there is no real link between the price of Bitcoin and DeepSeek.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: robelneo on February 01, 2025, 07:22:11 PM


So how should we process the coming in of DeepSeek? Will this be just another manifestation that we can entering the China century...as it may continue to disrupt many industries into the future and has become a major factor even in an industry that China does not want to involve with?
I sign up with DeepSeek to check what good it offers to the community. I am not really pond of using AI but out of curiosity, the interface is very clean, and the information they load up is good and looks like it is complete. I think Deepseeks will serve a lot of business considering the price is way cheaper than the other well-known AI models. Only the future can tell us if Deepseek will beat other AI, but right now they have an edge.

Quote
Choose DeepSeek if you need advanced data analysis, insights, and automation. It's suitable for businesses, researchers, and analysts who want to leverage AI for data-driven decision-making.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: Baofeng on February 02, 2025, 01:37:05 AM
I do not think that it will have a impact on crypto, and just to be fair, not just DeepSeek but all other AI out there. The thing that magnify this news is that the AI came from Chinese itself, and with that there could be a lot of news positive or negative.

With that, we've seen that it has a negative effect, however, this is going to be short term in my opinion.

AI is good but we have to set boundaries this early.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: bitterguy28 on February 02, 2025, 04:32:53 AM
So, there is now a rivalry in there and Deepseek isn't even existing for too long. The exploration for AI technologies are starting to emerge.
china would definitely continue to improve and deepseek would not be the last ai tech to come out of this generation there will be more advanced technologies and trends would emerge and whoever country gets it right and becomes successful would make the most money and would benefit from it the most we have yet to see how china could make use of deepseek as it is still quite new but i am sure that at least for a few months it will be good for their country maybe not so much for the usa
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: LogitechMouse on February 02, 2025, 08:53:13 AM
---
So how should we process the coming in of DeepSeek? Will this be just another manifestation that we can entering the China century...as it may continue to disrupt many industries into the future and has become a major factor even in an industry that China does not want to involve with?
Well, maybe let's also add the fact that the price movement of the Stock market and the crypto market is almost the same that's why when the US Stock Market went down, so does the crypto market. Coupling? I guess. :)

Nevertheless, this shows that you can create an AI that's the same as OpenAI with a significantly lower amount. I haven't used Deepseek that much, but I've seen it, and I would say that the answers on DeepSeek AI is much more in-depth than that of OpenAI or ChatGPT. With the emergence of DeepSeek, US companies that are focused on AI like OpenAI will make their project better now. We, the users are the ones that will benefit from this one as we will see better versions of these LLMs like ChatGPT.

China Century? Hmmm, it's hard to tell TBH, but I don't think that the US will let it happen though.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: robelneo on February 02, 2025, 11:43:50 AM

China Century? Hmmm, it's hard to tell TBH, but I don't think that the US will let it happen though.

China's DeepSeek has leveled up the AI industry
They are very cheap  API PRICING (https://api-docs.deepseek.com/quick_start/pricing), but of course the US AI companies that produce AI will try to be competitive and will try to match up DeepSeek presence in the AI industry.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: Gposas on February 02, 2025, 02:03:13 PM

(https://cdn.i-scmp.com/sites/default/files/styles/1020x680/public/d8/images/canvas/2025/01/01/edb65604-fdcd-4c35-85d0-024c55337c12_445e846b.jpg?itok=En4U4Crq&v=1735725213)



In recent days, DeepSeek was in the news and seems to me there is a huge interest on this beast most especially in the Western World. DeepSeek  (https://www.bbc.com/news/articles/c5yv5976z9po)is a Chinese-made artificial intelligence (AI) model, this shot to the top of Apple Store's downloads, stunning investors and sinking some tech stocks.

While this got no direct connection to the world and market of cryptocurrency, DeepSeek nevertheless made a significant impact on the cryptocurrency and tech markets so we should be wondering what it is on this thing and what does it mean for China and the rest of the world?

Quote
Cryptocurrencies and the shares of crypto-related firms like MicroStrategy also fell, even though crypto has “nothing to do” with DeepSeek, SMARDEX decentralized exchange founder Jean Rausis told MarketWatch.

Rather, crypto was simply a victim of broader market sentiment. JP Richardson, CEO of crypto exchange Exodus, told Fortune that crypto is a “risk-on” asset and “When there are any shakes or fears in the stock market” such as the appearance of an unexpected AI model, “typically, you see a correlation in the fall of price in the stock market, and that of cryptocurrency and Bitcoin.”


Source: https://cointelegraph.com/news/deepseek-crash-bitcoin-crypto


So how should we process the coming in of DeepSeek? Will this be just another manifestation that we can entering the China century...as it may continue to disrupt many industries into the future and has become a major factor even in an industry that China does not want to involve with?
I also saw this news but I was wondering what truly is the link between this Deepseek and the Crypto market... It was a clear observation that the market was trending downwards even until now. I begin to wonder if the AI is also an investor in crypto, or it's just there to cause a price disrupt but on the other hand, we call the current market trend a retracement.
Or maybe it's just a coincidence.

Though I haven't got to use the Deepseek but if there's truly a link with the Crypto market, I guess it should be unfolded.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: MrSpasybo on February 02, 2025, 05:53:40 PM
So how should we process the coming in of DeepSeek? Will this be just another manifestation that we can entering the China century...as it may continue to disrupt many industries into the future and has become a major factor even in an industry that China does not want to involve with?
DeepSeek does not disrupt the tech or crypto market, we still have BTC price above the $100K zone. Everything is still very stable for the crypto market and holders can continue to hold to target!

DeepSeek only makes traditional investors understand the AI market better, and causes the price of many AI stocks to adjust to their fair value instead of being inflated. When investors are worried, they also sell BTC because they only see BTC as a fintech stock, which causes the crypto market to decline slightly at the end of the week.

I personally believe that the US will continue to lead the AI wave in the near future, they will have products to replace DeepSeek. Optimism will soon return to the market and the bullrun will continue strongly for crypto.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: TBaaddi on February 03, 2025, 09:11:40 PM
It affected the AI bubble, not the crypto industry.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: yhiaali3 on February 03, 2025, 09:29:26 PM
I don't think DeepSeek has a direct relationship with the decline in crypto markets, but as the article mentioned, the main reason is the feeling of fear, as the decline in the stock markets and major American stocks led to a state of fear and anxiety that was reflected in all markets, including crypto, of course.

It is true that China is trying to invade all fields, but what distinguishes the Chinese industry in general is that it is cheap, so it is possible for us as users to benefit from these positive features and ignore the negative features.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: philipma1957 on February 04, 2025, 08:02:28 PM
I would think the musky trumpeter has caused a lot of world instability in the name of tariff wars.

Tariff wars are a clever way to hurt the entire two countries local regular people.

They enrich the governments in power .

Ie the musky trumpeter tariffs china and china tariffs the usa.

both governments get more money all on the backs of the normal people.

get used to it as this will be a worldwide norm in a year or two.

Will it hurt crypto in the long run no but short term we are very unstable.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: Freemind on February 04, 2025, 08:31:28 PM
What China has done with DeepSeek has several readings from my point of view. One of those things is to show that they can be leaders in many things without needing help from any outside country.  Another thing is to demonstrate to the world that hardware as expensive as Nvidia's is not necessary for an AI model to work better than any other, with a very small investment. And finally (although I can think of many other things) is to kick Trump where it hurts most, and make one of the United States' star companies lose a fortune in a few hours, making himself look ridiculous.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: hugeblack on February 05, 2025, 03:31:20 PM

DeepSeek only makes traditional investors understand the AI market better, and causes the price of many AI stocks to adjust to their fair value instead of being inflated. When investors are worried, they also sell BTC because they only see BTC as a fintech stock, which causes the crypto market to decline slightly at the end of the week.
Even this percentage is not large, there is no connection between DeepSeek and cryptocurrencies, but news articles find it an opportunity to gain free views, as many readers tend to read news that raises controversy, and DeepSeek was the first source of controversy.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: NotATether on February 06, 2025, 12:57:26 PM
DeepSeek is not even one of those big Chinese corporations. It's basically a startup. So it's really big news that this has not only upended models like OpenAI's but even the Chineses' native models.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: God Of Thunder on February 06, 2025, 02:07:13 PM
For some reason, I don't think that DeepSeek is anyhow related to the crypto crash. All I heard is that because of DeepSeek, Nvidia lost a huge amount, probably because their share price went down, and the entire market was affected. It is not just Bitcoin and crypto. The entire tech-related market has been affected by that blow, if I am not wrong.

As you can see, Bitcoin actually recovered within the next three days and it is still around 100K. I am not worried about Bitcoin price at all. But I am worried about alt coins that lost huge which will take a little time to recover.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: ZAINmalik75 on February 06, 2025, 07:38:22 PM
So how should we process the coming in of DeepSeek? Will this be just another manifestation that we can entering the China century...as it may continue to disrupt many industries into the future and has become a major factor even in an industry that China does not want to involve with?
This relation of Deepseek with stocks and then the relation of stock with down trend of crypto is a valid explanation because when most of the sticks falls crypto also falls but due to this deepseek project only AI companies lose their stock value so due to this crypto should not dump. But if big players are saying it was due to deep seek then I think we should avoid deepseek  ;)

The project is not even responding correctly to our queries at the moment, and you are saying it shook the crypto market, it was mainly done due to the hype created among investors via social media because when investors thought this was next-gen, they moved their funds to this company losing other stocks and crypto a gap.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: Faisal2202 on February 18, 2025, 05:24:18 PM
So how should we process the coming in of DeepSeek? Will this be just another manifestation that we can entering the China century...as it may continue to disrupt many industries into the future and has become a major factor even in an industry that China does not want to involve with?
Well till now we might have processed the coming in of deepseek which was nothing but overhyped project as we can see the current traffic of this project is not bigger than even Chat GPT and the investment is also lesser. This is just another AI model better than Chat GPT the more can be explained by some AI expert as I am not.

It will not disrupt the future of AI instead it will make the future bright and of cryptocurrency both as new innovations and new narratives will come into place.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: Bobcrypto on February 18, 2025, 05:31:05 PM

China Century? Hmmm, it's hard to tell TBH, but I don't think that the US will let it happen though.

China's DeepSeek has leveled up the AI industry
They are very cheap  API PRICING (https://api-docs.deepseek.com/quick_start/pricing), but of course the US AI companies that produce AI will try to be competitive and will try to match up DeepSeek presence in the AI industry.

Everything about AI will definitely turn a big competition as long as the US and China are involved, and  China deepseek will face other competitors on the AI technology.
I think that this is just the beginning AI launching, there will be many more AI with greater features and excellent innovation in near future.
Deepseek might have experienced some hype, and investors may further speculate deepseek to create more demands.
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: trendcoin on March 07, 2025, 06:05:51 PM
With only $6 million, they created a much better model. In this process, stocks of companies such as Nvidia naturally crashed because they were previously overvalued by the hype of artificial intelligence. Cryptocurrencies and Bitcoin were also immediately affected, as they behave in parallel with world stock markets and are always volatile. Everything is getting more interesting...
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: bitterguy28 on March 07, 2025, 07:18:36 PM
DeepSeek is not even one of those big Chinese corporations. It's basically a startup. So it's really big news that this has not only upended models like OpenAI's but even the Chineses' native models.
it has made such a big headline because a lot of people found it to be more helpful than ai but now i do not see many people talking about it anymore it has made such a big impact but at the end of the day people will always go for the one that they already are familiar with i think until now openai remains to be the top one when it comes to ai tech correct me if i am wrong though
Title: Re: Why DeepSeek crashed your Bitcoin and crypto?
Post by: memehunter on March 11, 2025, 05:50:02 PM
Crypto is always  prone to new technology for the two reasons mainly.
1. People often see new technology as a better investment and move funds from crypto.
2. Because of some false narrative of new technology that could make blockchain obsolete, like quantum computing.

But when the dust settles investor always come back to BTC, only to make it more streamlined and stronger.