Crypto Market Crash Jitters Re-Emerges As Alibaba Claims Its AI Tops DeepSeek
Highlights
- Alibaba claims its Qwen 2.5 AI Model superior that DeepSeek AI.
- It has raised concerns of anothor leg of crypto market crash as US AI dominance is at risk.
- DeepSeek caused global stock and crypto market crash this Monday.
Alibaba has unveiled its Artificial Intelligence model, Alibaba Qwen AI 2.5, claiming that Qwen surpasses DeepSeek-V3 in every aspect. The launch of the Artificial Intelligence (AI) model by the Chinese company comes on the first day of the Lunar New Year, triggering speculation if the AI segment is under pressure to outperform DeepSeek. This has raised concerns of another crypto market crash.
The dominance of US AI companies, which have sought billions of dollars to advance their respective AI models, are at risk.
Rise of Alibaba Qwen AI Risks Crypto Market Crash
The Cloud Unit of Alibaba spoke about the performance of Alibaba Qwen AI through a post on its official WeChat account. The Unit said that Alibaba’s AI model can outperform the likes of GPT-4o, DeepSeek-V3, and Llama-3.-405B. A report by Reuters has further highlighted that new models like these are forcing investors to introspect about the huge spending that the US AI firms have planned to undertake.
DeepSeek’s AI model has already hampered the US market which is evident from the crash in the share market and the crypto market. This is credited to low development costs and usage costs where DeepSeek spent around $6 million against $250 billion by the US AI giants. Now, Alibaba’s Qwen has joined the race and has already surpassed DeepSeek-V3.
Will Bitcoin and Altcoins Crash Ahead?
The DeepSeek saga led to a heavy decline in the crypto market with several digital tokens crashing heavily. AI coins saw major crash recently, with the likes of NEAR, NCP, and RENDER registering a plunged value within the range of 8-10%. Other cryptocurrencies like BTC, ETH, and XRP also declined. It is now speculated that a similar trend could mark a resurgence because Alibaba has taken the contest a step further.
Arthur Hayes, former BitMEX CEO, has predicted a mini financial crisis, saying that Bitcoin could drop to a value of $70,000. However, Arthur has also said that the resumption of money printing could send the value of BTC to $250k by the end of this year.
Ki Young Ju, the CEO of CryptoQuant, has said that there is still room for growth and global promotion by Donald Trump could extend the bull run to another couple of quarters.
Current Crypto Market Sentiments
Sentiments within the crypto market are bullish, especially for BTC. Coincodex has reported that the community is largely optimistic about Bitcoin with an FGI of 72 points. The flagship token is down by 0.61% in the last 24 hours to a value of $102,394.44 but, it can still rebound considering almost 11 US states are pushing to have Strategic Bitcoin Reserve.
Ethereum is trading at $3,133.57, down by 2.15% over the past 24 hours. There is a chance that ETH price crash may happen, and it may go down to $3,000. Overall, the global market cap of cryptocurrencies is down by 1.05% to around $3.47 trillion.
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