For four years, the U.S. government has not sold BTC, faced regulatory pressure, or dealt with lawsuits. Nevertheless, cryptocurrencies are witnessing a decline. The potential repetition of events from 25 years ago is shaking the crypto market. The emergence of DeepSeek has turned risk markets upside down, sparking confusion and concern. What are experts saying about this situation?
DeepSeek Tremors
An OpenAI subscription, priced at $200, has reportedly failed to yield profits for users due to high costs. This was revealed weeks ago, highlighting the immense operational expenses tied to massive data centers and billion-dollar chips. This has consequently led to even higher valuations in the AI sector. NVIDIA’s stock has soared parabolically.
Then came DeepSeek, a project claimed to have launched in two months for $6-7 million, boasting better results than ChatGPT and originating from China. This perception of a bubble around such trillion-dollar valuations has triggered significant market reactions.
Expert Opinions
Poppe remains optimistic, suggesting that the Chinese government has financed the DeepSeek initiative. The server costs to handle millions of users simultaneously are substantial. With additional demands from features like image processing requiring heavy GPU usage, this Chinese competitor is operating at a loss compared to OpenAI’s prices.
Poppe and others believe that the Chinese government has crafted this narrative as an effective weapon in the tech war against the U.S., achieving noticeable success by erasing $1 trillion from U.S. stock markets.
Analysts are sharing signals of potential bottoms for altcoins, with Poppe joining this trend using SEI Coin as an example.
