Technical earthquake from the east
Chinese AI platform DeepSeek has sparked a wave of turmoil in global markets, shaking investor confidence in AI-based cryptocurrencies, most notably FET. With high efficiency and low cost, China has shaken up the global tech and economic landscape, so how did it manage to do it?
1. Deep SEC and its implications for digital currencies
Low cost, high impact
China developed its DeepSec model for less than $6 million, compared to the billions of dollars spent by Western companies like OpenAI. This cost disparity has investors concerned about whether these Western projects are overvalued.
A blow to Nvidia and the chip industry
DeepSec relied on simple chips, which dampened expectations for demand for Nvidia’s advanced chips. As a result, the company’s shares fell 10%, followed by a massive 13% drop in the value of AI-related cryptocurrencies like FET and RENDER in a single day.
2. Dimensions of the Disaster: From Cryptocurrencies to Global Markets
Impact on Bitcoin
Bitcoin price has dropped below $100,000 for the first time in months, hit by massive liquidations worth more than $861 million.
Impact on US companies
The fallout included shares of major companies such as Microsoft and Nvidia, sending the Nasdaq down 3.5%, in a sign of a possible shift in the center of technology power towards the East.
3. Is DeepSec a Chinese economic tool?
Artificial Intelligence or Political Strategy?
Some see China as using DeepSec as a means to undermine the Western AI industry, especially given its influence on global markets and monetary policies.
The negative role of automated trading
Rapid trading algorithms have exacerbated the collapse, fueling panic in the markets and turning small declines into a full-blown crisis.
4. The future of digital currencies and artificial intelligence
Investment opportunities or new risks?
Some analysts see the sharp decline in the value of coins like FET as a buying opportunity, while others advise caution in investing in these coins until they adapt to the new market challenges.
The West vs China
This crisis may prompt Western companies to rethink production costs and develop more efficient models, while China seeks to enhance its technological superiority in this area.
Conclusion: A new battle in the digital arena
The DeepSec crisis is not just a passing event, but a turning point that exposes the fragility of the global digital economy. Just as China has impacted sectors like electric cars and solar energy, it is reshaping the future of artificial intelligence. The question now is: Who will weather the storm and stay ahead?