Why did the crypto market crash due to Deep Seek?

In recent years, the cryptocurrency market has experienced several sharp declines, and one of the reasons for this, according to some reports, was artificial intelligence technology, in particular the Deep Seek system. This platform, which uses deep learning algorithms to analyze financial data, has the ability to quickly predict market movements and influence trading decisions. However, its use has led to unexpected consequences for cryptocurrencies.

Deep Seek uses complex models to predict cryptocurrency prices, based on a huge amount of data: from price charts to social networks and news. This is especially dangerous for the cryptocurrency market, where volatility is always high.

The market crashed because Deep Seek’s algorithms reacted quickly to minor changes, which led to massive sales of cryptocurrencies. As a result, sharp price fluctuations occurred, caused by the simultaneous reaction of many traders to signals, which created additional panic among investors.