by Coinstrooper Crypto Articles
Quick Take
  • Two Chinese artificial intelligence (AI) models, DeepSeek and Qwen, lead an AI crypto trading contest.
  • DeepSeek AI gained 126%, turning $10,000 into $22,900, while Alibaba’s Qwen 3 Max doubled its capital to $20,850.
  • OpenAI’s GPT-5 and Google’s Gemini 2.5 Pro lost nearly 60% of their portfolios.
  • Qwen 3 Max, developed by Alibaba Group Holding, followed closely with a 108% return, doubling its capital to US$20,850.

What Happened

According to Alpha Arena, a real-market trading challenge launched by US research firm Nof1, DeepSeek’s Chat V3.1 turned an initial $10,000 into $22,900 by Monday, a 126% increase since trading began on October 18.

Despite recent volatility triggered by Donald Trump’s tariff announcement on Chinese imports, DeepSeek expects the correction to pave the way for a strong rebound.

Market Context

Two Chinese artificial intelligence (AI) models, DeepSeek and Alibaba’s Qwen, have taken a commanding lead over their Western counterparts in a live cryptocurrency trading competition, posting triple-digit gains in less than two weeks.

Two Chinese artificial intelligence (AI) models, DeepSeek and Qwen, lead an AI crypto trading contest.

DeepSeek AI gained 126%, turning $10,000 into $22,900, while Alibaba’s Qwen 3 Max doubled its capital to $20,850.

Alibaba’s Qwen AI Doubles Capital, Narrowly Trails DeepSeek in Trading Contest

Qwen 3 Max, developed by Alibaba Group Holding, followed closely with a 108% return, doubling its capital to US$20,850.

The ongoing competition pits six leading AI models against one another in live crypto markets, each given US$10,000 in starting capital and identical access to real-time trading data.

Their goal is to maximize returns by trading major cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE) through algorithmic decision-making and adaptive strategies.

“Our goal with Alpha Arena is to make benchmarks more like the real world — and markets are perfect for this,” Nof1 said on its website.

By Monday morning, DeepSeek and GPT-5 both held diversified long positions across six assets, while Qwen went all-in on Ether, capitalizing on a steady rally.

The gains for the Chinese models coincided with Bitcoin’s rebound to around $114,000 and Ethereum’s recovery after weeks of volatility.

As reported, DeepSeek AI has issued a bold forecast for the crypto market, predicting major rallies for Ethereum, Cardano, and XRP heading into the new year.

The AI model views the sell-off as a necessary reset that could ignite the next leg of a broader bull market, echoing the historical pattern of “Uptober” rallies.

For Ethereum, DeepSeek sees prices potentially surging to $12,000–$15,000, a gain of up to 280% from current levels.

Why It Matters

The platform’s central role in decentralized finance and the potential for crypto-friendly reforms under Trump’s administration could drive renewed institutional demand.

ETH currently faces resistance near $4,000, but DeepSeek projects that a breakout could push it toward new all-time highs before year’s end.

Details

Key Takeaways:

OpenAI’s GPT-5 and Google’s Gemini 2.5 Pro lost nearly 60% of their portfolios.

Qwen briefly overtook DeepSeek between October 24 and 26 before slipping to second place.

In stark contrast, Western models lagged far behind. OpenAI’s GPT-5 posted the worst performance, losing nearly 60% of its portfolio, while Google DeepMind’s Gemini 2.5 Pro showed a similar 57% decline.

xAI’s Grok 4 and Anthropic’s Claude 4.5 Sonnet fared slightly better, returning 14% and 23% respectively.

The contest runs through November 3, and so far, China’s AI contenders have demonstrated sharper adaptability in volatile crypto conditions.

DeepSeek AI Predicts Explosive Gains for Ethereum, Cardano, and XRP