The crypto market has recently been shaken by the release of the Chinese artificial intelligence model called Deepseek. The price of Bitcoin experienced 6 %decrease with this development, while Ethereum and many subcoins have seen similar losses. So, is Deepseek really a force that can affect the crypto market, or is it just a temporary wave of fear?
Why did Deepseek upset the markets?
Deepseek was introduced as China’s new open source and energy -efficient artificial intelligence model. This model, which attracts attention with its rival of technology giants such as the US -based OpenAI and Google, was developed with a surprisingly low budget. Only $ 6 million investment and Deepseek, which was created with the old equipment of Nvidia, aroused a worldwide repercussion.
This development caused a major decrease in US technology shares. In particular, Nvidia fell 17 %by experiencing one of the largest one -day value losses in history. This collapse affected the crypto market. The fact that large investors began to sell crypto assets to balance their losses in technology shares led to a large wave of sales in Bitcoin and subcoins.
What is the reason for the decrease in Bitcoin and Altcoins?
It is not a new situation that Bitcoin is influenced by such macroeconomic events. Exodus CEO JP Richardson,
The crypto is located in a risky asset class. When there is a concussion in the stock market, Bitcoin and other digital assets are expected to depreciate.
he said.
In particular, Bitcoin’s correlation with stocks has become more evident in recent years. In an analysis by the finance giant Bitmex, the strong correlation between Bitcoin and US stock market indices will continue for a while. When crypto investors evaluated the main reasons for price movements, the decline realized that artificial intelligence had no direct effect. On the contrary, events such as Deepseek can affect investor psychology and trigger panic sales in the markets.
What can be the long -term effects of the Deepseek Platform on crypto?
Deepseek’s long -term effects on crypto markets are still unclear. However, many experts say that it does not pose a direct threat to Bitcoin and other digital assets. In fact, this development can provide integration opportunities with blockchain technology by enabling the development of artificial intelligence at lower costs. Richardson of Exodus CEO:
This technology will allow us to create a better, cheaper and faster open source artificial intelligence systems.
he said.
On the other hand, how Deepseek will be met by regulators in the United States and Europe is an important question mark. Chinese -based practices were previously banned in Western countries due to security concerns. In particular, considering the US sanctions against Tiktok, Deepseek is expected to face a similar fate.
CONCLUSION: Will Crypto markets recover?
Although panic sales triggered by the release of Deepseek has caused short -term losses for crypto investors, prices have started to recover rapidly. Bitwise Research President Andre Dragosch,
It is a very positive sign that the price of Bitcoin maintains its stability while Nasdaq falls.
commented.
This shows that investors’ long -term expectations are strong and that Bitcoin has become more resistant to macroeconomic events. If sales pressure on the market decreases, Bitcoins and Altcoins may rise again for new peaks in the near term.
