China's DeepSeek and Alibaba's Qwen AI Beat Rivals in Crypto Trading Contest | Altcoin Trading | CryptoRank.io

Chinese AI Models Take Lead in Crypto Trading Competition

 

In a compelling demonstration of technological prowess, Chinese artificial intelligence (AI) models, DeepSeek and Alibaba's Qwen, have surged ahead of their Western counterparts in a high-stakes cryptocurrency trading competition. Spearheaded by Alpha Arena, a program devised by the US research firm Nof1, the competition allows AI models to engage in live crypto market trading. Remarkably, both Chinese models have posted triple-digit gains in under two weeks.

 

Astounding Gains for DeepSeek and Qwen

 

DeepSeek, using its Chat V3.1 technology, impressively multiplied an initial seed of $10,000 into $22,900 by Monday. This represents a staggering 126% increase since the competition began on October 18. Not far behind, Alibaba Group Holding's Qwen 3 Max achieved a 108% return, expanding its initial capital to US$20,850. Interestingly, Qwen briefly took the lead from DeepSeek between October 24 and 26, showcasing a close race before falling slightly behind.

 

Western Models Struggle to Keep Pace

 

Conversely, the Western AI models participating in the competition have significantly underperformed. OpenAI's GPT-5 ended up with the poorest performance, losing almost 60% of its trading capital. Similarly, Google DeepMind's Gemini 2.5 Pro registered a 57% decline. Other Western models, like xAI's Grok 4 and Anthropic's Claude 4.5 Sonnet, saw modest returns of 14% and 23%, respectively.

 

The Structure of Alpha Arena's Competition

 

Alpha Arena has designed a fair playing field by giving each of the six leading AI models $10,000 in initial capital. All participants have equal access to real-time trading data and opportunities to trade major cryptocurrencies, including Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE). The primary objective is to maximize returns through sophisticated algorithmic decision-making and adaptive trading strategies.

 

Key Strategies and Trends

 

Both DeepSeek and GPT-5 have adopted diversified long positions across six crypto assets. Meanwhile, Qwen seized the opportunity presented by a steady rally in Ether by going all-in. These tactical decisions occurred alongside concurrent rallies in Bitcoin and Ethereum, aligning perfectly with the AI models' strategic outlook. The gains achieved by the Chinese models corresponded with Bitcoin's rebound to approximately $114,000 and Ethereum's recovery following a period of volatility.

 

DeepSeek’s Bold Predictions for the Crypto Market

 

In addition to its current success in the trading challenge, DeepSeek AI has made ambitious forecasts for the broader crypto market. It anticipates significant rallies for Ethereum, Cardano, and XRP as we move closer to the new year. This prediction comes despite recent market instability, which was triggered, in part, by Donald Trump's tariff announcements on Chinese imports. DeepSeek interprets the recent sell-off as a necessary market correction that could set the stage for the next bull market phase.

 

Future Projections for Ethereum, Cardano, and XRP

 

DeepSeek's foresight includes an optimistic projection for Ethereum, with potential price surges to $12,000-$15,000, suggesting up to a 280% increase from current levels. The model posits that Ethereum's crucial role in decentralized finance and possible supportive reforms under Trump's administration could renew institutional interest. Facing resistance at approximately $4,000, a breakout could propel Ethereum to new historic highs by year’s end.

 

DeepSeek’s outlook for Cardano and XRP is similarly enthusiastic. For Cardano, it forecasts a rise to between $7 and $10 by late 2025, implying a 1,200% increase driven by an expanding developer base and technical robustness. Meanwhile, XRP could see values rise to around $10, bolstered by regulatory advancements and strengthened by new partnerships following Ripple's victory over the SEC in court.