DeepSeek, a Chinese startup, launched its latest AI model, competing with industry-leading Large Language Models in the U.S. at a fraction of the cost, disrupting Bitcoin, crypto and the AI agent economy.
The apps roll-out on the Apple App Store over the weekend saw users rush to download the application, driving its popularity and ushering a correction in Bitcoin and AI agent tokens on Monday. The AI model’s launch wiped out $2.5 billion from agent tokens.
Bitcoin (BTC), altcoins and crypto tokens are attempting to recover from the shockwaves sent by DeepSeek, BTC trades above $102,000 on Tuesday.
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Bitcoin and AI agent token market overhauled by DeepSeek
Crypto market capitalization holds steady above $3.649 trillion on Tuesday. The market cap of AI agent tokens suffered another 12% correction in the last 24 hours, down to $10.125 billion, according to CoinGecko data.
The top three tokens in the category, Artificial Superintelligence Alliance (FET), Virtuals Protocol (VIRTUAL) and ai16z (AI16Z) were hit by double-digit declines in the past seven days, between 4 to 7% correction in the last 24 hours.
The three tokens have started their recovery in the past hour as crypto traders digest the future outlook of AI and technology dominance in China.
The AI market cap slipped from $12.9 billion to $10.2 billion on Monday as the Chinese LLM promised 14 cents per million tokens against GPT-4’s $15. U.S.-based crypto traders are concerned about a widespread market correction as the technological update challenges the U.S.’
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Author: Ekta Mourya
