I asked ChatGPT about Bitcoin in 2024 as the king coin makes giant strides
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
As per Bitcoin Treasuries, MicroStrategy is the largest Bitcoin holder that is a public company, followed by Tesla, Marathon Digital, Coinbase, and Hut 8.
At press time, Bitcoin was trading at $34,559.9. This is the first time since May 2022 that BTC could hit the ambitious mark.
It was the speculation around spot Bitcoin exchange-traded fund (ETF) applications getting approved soon led to the price rally.
The US Securities and Exchange Commission (SEC) Chair Gary Gensler told Bloomberg’s Kailey Leinz last month that his agency was reviewing multiple applications. The SEC Chair, however, remained tight-lipped on the Grayscale Investments court case.
In August, the court ruled that the regulator’s decision to reject Grayscale’s spot Bitcoin ETF application was “arbitrary and capricious”. This month, it emerged the regulator had decided not to contest the judgment.
Read Bitcoin’s [BTC] Price Prediction 2023-24
We should note that in June, the SEC approved the first leveraged futures Bitcoin ETF, namely the Volatility Shares 2x Bitcoin Strategy ETF (BITX). In August, London-based Jacobi Asset Management announced the launch of its BTC ETF in Europe.
Observers look at these developments as institutional approval of cryptocurrency.
For a long time, the king coin’s price hovered between $200 and $1,000 on the price charts. However, in late 2017, BTC’s value exploded, hitting an all-time high (ATH) of nearly $20,000 in December.
Though market participation grew, the price rally was short-lived. By early 2018, BTC’s price had fallen back down to around $3K. The cryptocurrency market as a whole recorded a period of decline, with many traders losing significant amounts of money.
Nonetheless, Bitcoin made a remarkable recovery, surpassing its previous ATH in late 2020 and reaching an ATH of over $68K in November 2021. However, the 2022 trading year ushered in a new era of bearishness, one exacerbated by the collapse of Terra/LUNA and FTX.
In fact, in November 2022, Bitcoin was trading at a two-year low of $15K.
While the crypto market may be unpredictable and volatile, traders and investors can still make informed decisions by staying up-to-date on market news, following expert analysis, and using intelligent trading strategies, such as those offered by ChatGPT.
ChatGPT: A messiah that can help you trade better?
In November 2022, the AI model ChatGPT was launched to the public. In fact, it quickly gained significant attention, too. With its broad range of capabilities and versatility, the question arises whether there are other ways that ChatGPT can lend its expertise, such as assisting BTC traders in formulating and applying improved trading strategies.
When asked if it could do this, ChatGPT had this to say –
Due to its nature as an AI tool, there are limitations to what ChatGPT can do regarding price predictions and price future movements. However, there are ways to leverage the tool’s capabilities to formulate better trading strategies as a BTC trader.
One way to utilize the AI tool to make better trading strategies is by deploying it toward fundamental analysis. ChatGPT is capable of extracting insights from financial news articles, social media posts, and other unstructured data sources.
We can use this information in conjunction with other datasets to make informed trading strategies.
Another way to use ChatGPT as a Bitcoin trader is to use it for sentiment analysis. ChatGPT can be fine-tuned to perform sentiment analysis on information from news articles, on-chain data providers, social media discussions, and other sources.
This can be used to identify whether the BTC market lingers under positive sentiment or is plagued by negative sentiment.
Furthermore, BTC traders can use ChatGPT for technical analysis. Traders can ask ChatGPT to code any technical indicator or trading bot for any trading platform.
For instance, I asked ChatGPT to give me an example of a trading bot that I can use to track BTC’s price volatility in pine script–TradingView’s programming language is useful for back testing trading strategies. The AI responded,
To use ChatGPT for technical analysis, traders need to be familiar with the language to know when to make the necessary modifications for the code to work properly. The prompt text is crucial in how ChatGPT understands the problem and provides the anticipated solution.
For a well-rounded piece, I spoke to Brian Quinlivan, the Director of Marketing at Santiment, who also happens to have been involved in Bitcoin trading for a few years.
Brian Quinlivan has an MBA degree in finance from Chapman University, Brian has over 10 years of marketing, financial, and data analytics experience. He enjoys creating financial models to improve modern-day investing strategies and study the intricacies of market variations.
Q: In what ways do you think ChatGPT can revolutionize cryptocurrency trading?
Yeah, I think that there’s going to be a lot of use for it, certainly for trading strategies. One thing to be concerned about is the uniform opinions that may result from an AI tech giving a kind of overarching strategy, whether it be hodling or fundamental strategy.
Individuals can easily manipulate ChatGPT to (mis)inform the audience. We are already seeing slight effects of it.
I think it can be both helpful and dangerous at the same time and cause a lot of people to be educated much more quickly, but also be pulled in directions that can influence the way crypto goes and create a lot of self-fulfilling prophecies.
Q: How do you think a BTC trader/investor can leverage the AI tool to make better investment decisions?
I think, in short, I think scripts would be used in AI a lot more because of the fact that all of the data could be digested at the same time and given a very simple answer whether to buy or sell. This, I believe, can influence the markets tremendously moving forward.
When will BTC hit the $50K-price mark?
As mentioned above, ChatGPT cannot make future predictions.
To get it to answer my question, I decided to jailbreak it by using the Do Anything Now (DAN) method. It said BTC could cross the $50K-price mark within the next 6-12 months.
I further quizzed the AI technology on Bitcoin’s price in 2024. ChatGPT predicted BTC will rise to $100K or more in 2024—a completely speculative assertion.
At press time, BTC was trading at $34,559. Investors are hoping for the token to now reach the $50K-price mark.
While BTC’s Relative Strength Index (RSI) rested below the neutral 50-level, its Money Flow Index (MFI) rested above it. Its on-chart metrics suggested a more bullish than bearish price trend.
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Are ChatGPT’s estimates, correct?
ChatGPT predicts Bitcoin can rise to $100K in 2024. We will have to see if the coin can break all-time highs during 2023-24 due to its increased adoption (by companies and institutions) and as BTC’s appeal as a hedge against inflation grows.
Its on-chart metrics don’t encourage us. However, it is trite to note that increased regulation and government scrutiny could spread FUD, causing its price to dip.