Why DeepSeek crashed your Bitcoin and crypto?

[TomPluz]

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 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?

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?

[bhadz]

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.

[ABCbits]

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).

[hugeblack]

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.

[robelneo]

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.

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.

[Baofeng]

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.

[bitterguy28]

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

[LogitechMouse]

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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.

[robelneo]

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, 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.

[Gposas]

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 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?

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.

[MrSpasybo]

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.

[TBaaddi]

It affected the AI bubble, not the crypto industry.

[yhiaali3]

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.

[philipma1957]

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.

[Freemind]

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.