DeepSeek AI Disrupts US Dominance in Tech and Finance
BitMex CEO Arthur Hayes Predicts Shift to Global Options
Arthur Hayes, CEO of BitMEX, a popular crypto trading platform, believes that DeepSeek AI, a Chinese counterpart of Open AI, could lead investors away from US-based stocks, bonds, and assets to more global options.
Hayes, who has a background in traditional finance, having worked as an equities trader for Deutsche Bank and Citi, recently expressed his thoughts on the rise of DeepSeek AI. He tweeted,
“What if the rise of DeepSeek causes global investors to question US exceptionalism. What if they question why they are overweight US tech vs the world and why they are overweight US bonds vs the world?”
DeepSeek AI: Disrupting Industry Norms
DeepSeek AI, founded in May 2023 by Liang Wenfeng, a hedge fund and AI expert, is disrupting industry leaders such as OpenAI, Google, and Meta by delivering fast and affordable solutions. Its price point is 20 to 30 times less expensive than its competitor, ChatGPT. As of January, the DeepSeek app has taken over ChatGPT in the app store.
The ascent of DeepSeek AI may serve as the final nudge toward decentralized financial alternatives like cryptocurrency. Crypto is agnostic to any one country, making it a compelling hedge against market shocks due to geopolitical or US economic conditions.
Crypto: A Refuge Against Market Shocks
Crypto offers borderless access to assets, allowing investors to diversify without being limited by the policies or control of a single nation. This trend is already picking up, with 47% of traditional hedge funds including crypto investments in their portfolios.
Furthermore, derivatives are increasingly being used to get exposure to these assets. According to a study conducted by Security.org, around 65 million individuals currently invest in crypto, and an additional 14% of those without crypto holdings plan to invest in it in the future.
Market Performance: AI x Crypto Tokens
Despite the developments in the AI sector, the total market cap of AI x crypto tokens sits at $36.3 billion, with a drop of over 12% in the last 24 hours. Some of the top losers in the DeFAI and AI Agents sectors include:
- GRIFFAIN (25.97% drop)
- ORBIT (GRIFT) (22.52% drop)
- Hive AI (BUZZ) (35.61% drop)
- neur. sh (NEUR) (22.14% drop)
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