The chatbot said AI could play a role in pushing Bitcoin’s price up through its influence on market analysis, trading strategies and blockchain tech development.
Artificial intelligence (AI) can play a role in a scenario where Bitcoin’s price reaches $100,000 in 2024, according to GPT-4, the latest version of AI chatbot ChatGPT.
On Jan. 1, Cointelegraph asked the AI chatbot if Bitcoin’s price could potentially hit $100,000 this year and how AI could play a role in reaching this result. According to the AI chatbot, it’s “theoretically possible” for Bitcoin to reach $100,000 in 2024 if a series of favorable conditions align. However, ChatGPT also noted that this “remains highly speculative.”
Following this, the AI chatbot also provided some general factors that could contribute to such a scenario. This includes positive regulatory developments, increased retail and institutional adoption and currency devaluation or inflation.
ChatGPT also said that the approval of a spot Bitcoin exchange-traded fund (ETF) could have a positive impact on the price. The AI noted that a spot BTC ETF approval would provide greater accessibility and liquidity to the asset. It also encourages institutional investors to enter the market, as the approval could be seen as a sign of regulatory acceptance.
Cointelegraph then asked ChatGPT how AI could contribute to Bitcoin reaching $100,000 in 2024. The chatbot explained that AI could play a role in this potential scenario. This would be through AI’s influence on market analysis, trading strategies and broader technological advancements in blockchain.
ChatGPT explained that AI algorithms can process large amounts of market data and identify trends and patterns that human analysts could miss. The AI chatbot said that AI-driven trading bots could also execute trades at optimal times depending on market conditions. ChatGPT noted that the bots could react much faster than humans in a fast-paced market environment.
While there are benefits to using AI in trading, it also comes with significant risks, according to ChatGPT. These risks include hacking and cyberattacks. In 2022, a trading bot gained $1 million through an arbitrage trading opportunity. However, a hacker tricked the bot into authorizing a malicious transaction, draining all the funds.
Source: Cointelegraph.com
