China's DeepSeek and Alibaba's Qwen AI Beat Rivals in Crypto Trading Contest

Impressive Performance of Chinese AI Models in Cryptocurrency Trading

 

In the fiercely competitive realm of cryptocurrency trading, two Chinese artificial intelligence (AI) models, DeepSeek and Alibaba's Qwen, have surged ahead of their Western counterparts. The ongoing live trading competition organized by US research firm Nof1, known as Alpha Arena, has presented a platform for these AI models to showcase their prowess. Within a span of less than two weeks, these models have reported astounding triple-digit gains, leaving Western models trailing by a significant margin.

 

DeepSeek and Qwen: Commanding the Lead

 

DeepSeek's Chat V3.1 has particularly made headlines by transforming an initial investment of $10,000 into $22,900, marking a stellar 126% increase since the competition commenced on October 18. Close on its heels is Alibaba's Qwen 3 Max, which recorded a remarkable 108% return, effectively doubling its capital to $20,850. Notably, Qwen briefly overtook DeepSeek between October 24 and 26 before settling back into second place.

 

Western Models Struggle to Keep Up

 

In stark contrast, Western AI models have been lackluster in their performance. OpenAI's GPT-5 showcased the poorest results, with nearly 60% of its portfolio evaporated. Similarly, Google DeepMind's Gemini 2.5 Pro suffered a setback with a 57% decline. Nonetheless, some Western models managed to eke out modest gains; notably, xAI's Grok 4 and Anthropic's Claude 4.5 Sonnet reported returns of 14% and 23% respectively.

 

The Alpha Arena Competition

 

The Alpha Arena competition is designed to test the capabilities of leading AI models by providing them each with an initial $10,000 in capital and equal access to real-time trading data. The primary goal is to maximize returns through algorithmic decision-making and adaptive trading strategies focused on major cryptocurrencies like Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE).

 

Strategies of DeepSeek and Qwen

 

As of last Monday, DeepSeek and GPT-5 were observed holding diversified long positions across six assets. In contrast, Qwen chose to concentrate its efforts on Ether, capitalizing on a consistent upward movement in its value. This strategic focus facilitated their impressive returns, coinciding with a broader market rebound, especially for Bitcoin and Ethereum.

 

Forecast and Market Predictions

 

DeepSeek AI has not only been active in trading but also bold in its market predictions. Their forecasts foresee significant rallies for Ethereum, Cardano, and XRP as we head into the new year. Although recently marred by volatility due to geopolitical tensions such as Donald Trump's tariff announcements, DeepSeek views these corrections as necessary resets. The AI model hypothesizes that these resets might trigger the next phase of longer-term bullish trends, often referred to as "Uptober" rallies.

 

Ethereum's Potential Growth

 

Specific to Ethereum, DeepSeek projects a substantial upsurge in value, potentially reaching $12,000 to $15,000 — a staggering 280% increase from present levels. Ethereum's foundational role in decentralized finance (DeFi) ecosystems coupled with potential regulatory reforms under the Trump administration might drive heightened institutional interest and demand. Despite current resistance around the $4,000 mark, DeepSeek anticipates a breakthrough that could lead to unprecedented all-time highs before the year's close.

 

Cardano and XRP: Future Projections

 

For Cardano (ADA), DeepSeek predicts a climb to $7-$10 by the end of 2025, which translates to a remarkable 1,200% growth. This optimistic forecast is primarily fueled by Cardano's ever-expanding developer community and its technical robustness. Meanwhile, XRP is anticipated to ascend towards $10, bolstered by improved regulatory transparency and burgeoning partnerships following Ripple’s legal victory against the SEC, thus reinstating investor confidence.

 

Conclusion

 

The significant gains by DeepSeek and Qwen in the ongoing Alpha Arena competition underscore the advanced algorithmic capabilities and market acumen of Chinese AI models. Their strategic decision-making and adaptability amid volatile crypto markets convey a promising future for AI’s role in financial trading. As the contest continues through November 3, investors and market enthusiasts alike will keenly observe whether these models can maintain their momentum and deliver on their audacious predictions.