Bitcoin has experienced numerous ups and downs in its relatively short history, but only a few have been declared full-fledged bull markets. The most recent was at the end of 2021, when the cryptocurrency skyrocketed to its ATH of $69,000.
What followed was a massive price drop that dumped BTC all the way below $20,000 amid multiple industry crashes, as well as rampant global inflation and war in Europe.
As Bitcoin has recovered significantly since its attempt at $16,000, the community often speculates whether a new bull market has already begun or is just around the corner. In this thread, we’ll find out what AI chatbot ChatGPT thinks about it.
Although ChatGPT had several things are wrong about BTC, such as its all-time high price, the chatbot provided some interesting insights into what the next bull market might trigger. First of all, it emphasized global implementation, which consists of two parts – market and institutional – and we combined them into one.
In terms of market adoption, ChatGPT believes that the price of the cryptocurrency will resume its upward trajectory as more companies begin to accept it as a payment method. This will help “create positive sentiment and stimulate demand.”
“Factors such as the integration of bitcoin payment options by major companies or the launch of regulated bitcoin investment vehicles could contribute to the growth of the market.”
Institutional adoption could also help push the price of BTC higher. We will remind that numerous firms, such as Micro strategy, MassMutual, Tesla, BlackRock and others have either bought some of the asset or otherwise raised it during the recent bull market. A repeat of this scenario could trigger another rise.
The AI chatbot also reported certain technological developments that could be one of the reasons for another increase. For example, the Bitcoin network began to accept and attract more after the Tarpoot update, which allowed the creation of NFTs based on it.
So far it is benefited miners, in particular due to the increase in the number of transactions and the higher cost of the commission. However, there are other factors and possibilities, according to ChatGPT.
“Major advances in Bitcoin’s underlying technology or improvements in scalability, security or privacy could generate excitement and attract more users and investors.”
While several countries have made initial attempts to regulate the cryptocurrency industry over the past few years, it still remains largely unregulated. In fact, some of the biggest countries, such as China and the US, have either officially banned this asset class or simply failed to provide detailed regulations that could help it thrive while protecting investors.
If this finally changes, ChatGPT believes that the price of BTC will start heading north again.
“Clear and supportive regulations can provide a more stable environment for cryptocurrencies, increasing investor confidence. Positive regulatory changes, such as the recognition of Bitcoin as a legal form of payment or the creation of a supporting base for cryptocurrency businesses, can contribute to the growth of the market.”
The landscape in the US has been particularly damaging over the past few months as the SEC, without providing clear guidance on which crypto-assets are securities, has taken on the likes of Coinbase, BinanceKraken and others.
Economic and geopolitical factors
As mentioned above, the war that broke out in Europe hurt investors in various sectors, including cryptocurrency. In addition, rising inflation and central banks’ desperate attempts to combat it have led to an outflow of risky assets such as BTC.
But on a larger macro scale, ChatGPT believes that a dire economic situation, currency devaluation or political upheaval could turn people to Bitcoin. Interest in the mainstream cryptocurrency is likely to increase as people look for “decentralized and non-government-controlled assets like Bitcoin.”
We have seen similar events in such countries Argentina and Turkey, where locals have been battling double- and even triple-digit inflation for some time. So ChatGPT repeated words legendary legacy investor Paul Tudor Jones III,
“In times of economic uncertainty, some investors may view bitcoin as a hedge against traditional financial systems, potentially driving up its price.”
And last but not least, the AI chatbot paid attention to events related to halving. Included in the Bitcoin network since its inception in 2009, they occur every 210,000 blocks (roughly four years) and aim to reduce the block reward, thus reducing the rate at which new BTC are created.
The previous three halvings were followed by massive price spikes, and ChatGPT argued that the next one, expected to take place in April next year, is likely to see the same price swings.
“Historically, halvings have coincided with bull markets, as the decrease in supply and potential increase in demand has positively impacted the price of Bitcoin.”
If you want to know more about what ChatGPT thinks will happen to BTC during and after the next halving, check out This article.
And if a new bull cycle does happen, you can prepare yourself by checking it out these tips.