The emergence of China’s artificial intelligence (AI) model, DeepSeek, and its free AI offering has sent shockwaves through American markets, with significant spillover effects rippling across both traditional financial markets and the cryptocurrency sector.
Over the weekend, Bitcoin (BTC), the leading digital asset, saw a sharp decline but managed to hold its ground above $100,000 at press time. In light of these developments, Finbold turned to DeepSeek itself—one of the primary factors behind the recent market downturn—to craft an optimal cryptocurrency portfolio tailored for 2025.
DeepSeek’s ideal crypto portfolio for 2025
DeepSeek prioritizes blue-chip cryptocurrencies like Bitcoin and Ethereum (ETH), dedicating 70% of its portfolio—$700 out of an initial $1,000—to these established digital assets, known for their stability and risk mitigation qualities.
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Bitcoin, comprising 40% of the portfolio, is favored for its increasing institutional adoption, global demand, and rising status as a store of value and hedge against inflation.
With persistently high inflation and Trump’s pro-cryptocurrency stance acting as additional catalysts, the outlook for the sector, particularly Bitcoin, remains optimistic.
DeepSeek has allocated just 25% of its portfolio to altcoins, a cautious move despite growing expectations of a shift in market dynamics. Analysts predict a potential decline in Bitcoin dominance (BTC.D), a key metric tracking Bitcoin’s share of the cryptocurrency market, which could pave the way for a significant ‘altseason.’
Within its altcoin allocation, DeepSeek has earmarked 10% for Solana (SOL), citing its expanding developer ecosystem, cost-efficient transactions, and diverse use cases as major growth drivers.
Solana’s prospects are further supported by the potential approval of spot Solana exchange-traded funds (ETFs) filed by industry giants Bitwise, VanEck, and 21Shares. If approved, these ETFs could position Solana as a mainstream investment option, attracting significant institutional interest.
Another 10% of the portfolio is allocated to XRP, driven by increasing institutional demand and ecosystem expansion. Ripple’s regulatory approval of its RLUSD stablecoin in December 2024 marks a key milestone, enhancing the asset’s bullish outlook.
Coupled with factors like legal clarity following the SEC’s appeal and Trump’s pro-cryptocurrency stance, XRP appears poised for further growth in the evolving crypto market.
Finally, Chainlink (LINK) accounts for 5% of DeepSeek’s portfolio, supported by its rising prominence in the blockchain space. Its appeal is rooted in its expanding partnerships and growing adoption, which continue to strengthen its position as a vital player in the industry.
Lastly, stablecoins make up 5% of DeepSeek’s portfolio, equating to $50 from the initial $1,000 allocation. The AI model recommends Tether (USDT) or USD Coin (USDC) as preferred options, emphasizing their role in providing liquidity and stability within a volatile market.
This allocation acts as a safeguard, offering flexibility for potential reallocation during market shifts.
Anchored by blue-chip cryptocurrencies, supported by high-potential altcoins, and stabilized by a small allocation to stablecoins, DeepSeek’s portfolio offers a balanced approach, enabling investors to navigate the expanding digital asset market while effectively managing risk.
Featured image via Shutterstock
