Why Bitcoin remains a strong bet despite DeepSeek
THE emergence of DeepSeek, a Chinese AI company rapidly challenging the dominance of US AI giants, has sent ripples through markets.
The shakeup in the tech sector has spurred investor concerns over the future of American innovation and competitiveness. As a result, Bitcoin dropped below $100,000 this week, caught in the fallout of a broader selloff in risk assets.
In my view, this presents an opportunity to reinforce Bitcoin’s appeal rather than a cause for alarm. DeepSeek’s rise is a reminder that markets, particularly equities, are vulnerable to technological disruptions and geopolitical shifts. Bitcoin, however, operates outside these constraints. It offers a unique hedge against the uncertainty caused by such seismic changes, making its long-term case even stronger.
The firm’s rapid ascent has exposed the fragility of reliance on a few dominant players in the US tech sector. For years, companies like OpenAI and Alphabet have symbolized leadership in AI. Now, DeepSeek has arrived with a clear challenge, sparking fears of a diminished US competitive edge in one of the most important technological races of our time.
The uncertainty surrounding this rivalry has unnerved investors who previously banked on the supremacy of American innovation. The reaction has extended beyond tech stocks, pressuring Bitcoin as well. To me, this conflation of Bitcoin with other risk assets fails to account for its distinct characteristics.
Unlike equities tied to specific corporations or economies, Bitcoin exists independently of corporate earnings or national policies.
As markets reassess the balance of power in AI and technology, Bitcoin’s decentralized, borderless nature positions it as a stabilising alternative for investors wary of these shifts.
The US-China rivalry may enhance Bitcoin’s role
DeepSeek’s rise represents more than just a corporate success story. It reflects China’s determination to lead in cutting-edge technologies, a push that has already provoked policy responses in the US. Measures such as export controls and trade restrictions may add to market volatility, creating further uncertainty for investors.
In such an environment, Bitcoin stands out as a non-sovereign asset immune to geopolitical rivalries. Its decentralized structure ensures it is not tied to the fortunes of any one country or bloc. As tensions between the US and China intensify, Bitcoin could become even more attractive to investors seeking to mitigate risks associated with shifting economic alliances and policies.
Additionally, as capital reallocates in response to these changes, Bitcoin may benefit. Investors seeking neutrality - something neither Chinese nor American markets can offer - may increasingly view Bitcoin as the ideal option.
Institutional confidence in Bitcoin remains strong
The recent price dip may create headlines, but institutional interest in Bitcoin, I believe, is unlikely to waver. Large-scale investors recognize the asset’s potential as a portfolio diversifier and inflation hedge. They also understand that Bitcoin’s performance is not dictated by individual companies or industries but by its underlying principles of scarcity and decentralization.
The ecosystem supporting Bitcoin continues to mature. From greater regulatory clarity in major markets to the growth of Bitcoin ETFs, the infrastructure for adoption is steadily expanding. These developments ensure that Bitcoin remains central to conversations about the future of finance, regardless of short-term volatility.
While DeepSeek’s success may challenge the existing global tech order, it also underscores Bitcoin’s unique strengths.
The firm must tackle geopolitical rivalries, regulatory scrutiny, and corporate competition. Bitcoin, on the other hand, operates independently of such pressures. It is not reliant on any government or corporation to sustain its growth or maintain its value.
In my opinion, the rise of DeepSeek serves as a reminder of how quickly market dynamics can change. This volatility is precisely what makes Bitcoin so compelling. It offers a hedge against disruption, whether technological or geopolitical, while providing stability through its decentralized design.
The crypto’s growth trajectory has never been tied to the performance of a single sector or region. Its appeal is rooted in its unique attributes: a fixed supply, decentralized governance, and global acceptance. While DeepSeek’s rise has momentarily shaken markets, it does not diminish Bitcoin’s long-term potential. On the contrary, it highlights the value of an asset that operates independently of shifting corporate or national fortunes.
For those who understand Bitcoin’s resilience, the recent dip is an opportunity to reassess its role in their portfolio. History has shown that Bitcoin tends to emerge stronger after periods of uncertainty.
DeepSeek’s disruption may have unsettled markets, but it has also reinforced the importance of assets that transcend geopolitical and corporate boundaries.
Nigel Green, deVere Group CEO and founder
