• bitcoinBitcoin$95,535.85-0.48%
  • ethereumEthereum$2,675.39-0.32%
  • rippleXRP$2.57-2.93%
  • binancecoinBNB$651.67-2.78%
  • solanaSolana$166.49-8.16%

Crypto Crash Scare as Alibaba AI Outperforms DeepSeek

Crypto Crash Scare as Alibaba AI Outperforms DeepSeek

Alibaba Qwen AI has reportedly surpassed DeepSeek’s capabilities, sparking speculation of another crypto market crash as BTC and ETH decline.

Alibaba has introduced its Artificial Intelligence model, Alibaba Qwen AI 2.5, asserting that it surpasses DeepSeek-V3 in all respects. The Chinese company unveiled its Artificial Intelligence (AI) model on the first day of the Lunar New Year. It has sparked speculation regarding whether the AI segment is under pressure to surpass DeepSeek. This has prompted apprehension regarding the possibility of an additional crypto market collapse.

The dominance of US AI companies, which have pursued billions of dollars to advance their respective AI models, is at risk.

The rise of Alibaba Qwen AI poses the potential for a cryptocurrency market crash

Through a post on its official WeChat account, Alibaba’s Cloud Unit discussed the efficacy of Alibaba Qwen AI. According to the Unit, Alibaba’s AI model can surpass the capabilities of GPT-4o, DeepSeek-V3, and Llama-3.-405B. Reuters has also emphasized that investors are being compelled to contemplate the substantial expenditures that US AI firms have planned to make due to the introduction of new models.

DeepSeek’s AI model has already adversely affected the US market, as evidenced by the recent decline in the share and crypto markets. This is attributed to the fact that DeepSeek spent approximately $6 million, compared to the $250 billion the US AI giants spent on development and usage expenses. DeepSeek-V3 has been surpassed by Alibaba’s Qwen, which has entered the race.

Are Bitcoin and Altcoins on the brink of a crash?

The DeepSeek saga resulted in a significant decline in the crypto market, with the price of numerous digital tokens plummeting. Recently, AI coins experienced a substantial decrease in value, with NEAR, NCP, and RENDER experiencing a plunge of 8-10%. Additionally, other cryptocurrencies, including XRP, ETH, and BTC, experienced a decline. Alibaba has furthered the competition, prompting speculation that a comparable pattern may indicate a resurgence.

Arthur Hayes, the former CEO of BitMEX, has foreseen a minor financial crisis, predicting that Bitcoin could plummet to a value of $70,000. Nevertheless, Arthur has also stated that the value of BTC could reach $250,000 by the end of the year if money production resumes.

Ki Young Ju, the CEO of CryptoQuant, has stated that the bull run could be extended by a few more quarters due to the potential for growth and the global promotion of Donald Trump.

The current sentiments in the cryptocurrency market are as follows:

The crypto market is experiencing favorable sentiment, particularly about BTC. According to Coincodex, the Bitcoin community is generally optimistic, with an FGI of 72 points. The premier token has experienced a 0.61% decline in value over the past 24 hours, reaching $102,394.44. However, it is still possible for it to recover, as nearly 11 US states are advocating for the establishment of a Strategic Bitcoin Reserve.

The price of Ethereum has decreased by 2.15% in the past 24 hours, currently trading at $3,133.57. The price of ETH may plummet to $3,000. In general, the global market capitalization of cryptocurrencies has decreased by 1.05% to approximately $3.47 trillion.

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