DeepSeek will push investors away from U.S. markets: Hayes

Arthur Hayes, CEO of BitMex, said DeepSeek AI, Open AI’s Chinese counterpart, could move investors away from U.S.-based stocks, bonds and assets toward a more global option.

On January 27, Arthur Hayes posted on X saying that DeepSeek could make investors rethink their choices. Right now, when people talk about open source AI, it’s exclusively in the United States, thanks to OpenAI. Now, as other parts of the world begin to emerge similar counterparts, Hayes believes, that could push investors to spend their money on global options that the U.S. doesn’t dictate.

Hayes, CEO of crypto trading platform BitMEX, also has a background in traditional finance, having worked as a stock trader for Deutsche Bank and Citi before venturing into the crypto industry.

DeepSeek AI disrupts industry norms

DeepSeek was founded in May 2023 by Liang Wenfeng, a hedge fund and AI expert fully funded by Wenfeng’s quantitative hedge fund, High-Flyer. The company is disrupting industry leaders like OpenAI, Google, and Meta by providing fast, affordable solutions.

ChatGPT brought a $20 subscription; DeepSeek’s price is 20 to 30 times cheaper than its competitor. Since January, the DeepSeek application has taken over ChatGPT in the App Store and in the week following its launch, reports Financial Express.

For too long, tech giants have argued that artificial intelligence is difficult for the average person to replicate, but that view is quickly falling out of fashion, according to the report. WITH. The rise of DeepSeek AI could serve as the final push toward decentralized financial alternatives like cryptocurrency.

East crypto the refuge?

Crypto is independent of any country, making it a compelling hedge against market shocks due to geopolitical or economic conditions in the United States. Unlike traditional financial systems, crypto offers borderless access to assets, allowing investors to diversify without being constrained by the policies or control of a single country.

This trend is already growing: 47% of traditional hedge funds have included crypto investments in their portfolios, with derivatives increasingly used to gain exposure to these assets, reported Financial news. Also, on December 3, cryptocurrency trading in South Korea outperformed its stock exchange, the Korea Stock Exchange, by 22%.

According to a study conducted by Security.orgaround 65 million people currently invest in crypto – an additional 14% of those who don’t own cryptocurrencies plan to invest in them in the future. For investors, the question is not if this change will happen, but rather how soon.

Despite these developments in the AI ​​sector, Coingecko watch that the total market capitalization of AI x crypto tokens stands at $36.3 billion, with a decline of over 12% in the last 24 hours.