The Virtual Assets Subsidiary of the Japanese Financial Services giant Nomura, known as Laser Digital, recently created a lot of buzz across the crypto industry. On 19 September, it announced the launch of a new fund aimed at offering institutional investors exposure to Bitcoin. This news led to a significant price rally, with BTC floating above the $27k mark for a few days. However, the king coin couldn’t sustain the price rally and is currently trading at $26,625.
Legal victories in recent times also gave a respite to the crypto world. BTC was floating above the $27k mark for a few days, even then, but that enthusiasm soon died down. Bitcoin earlier soared as high as $31.7k within a day of Ripple securing a partial victory in its legal battle with the U.S. Securities and Exchange Commission on 13 July. But it failed to sustain the price rally, and the U.S. District Court of the Southern District of New York ruled in its judgment that the sale of Ripple’s XRP tokens on crypto exchanges did not constitute investment contracts, hence it is not a security. However, the court also ruled that the institutional sale of the XRP tokens violated Federal Securities laws.
The crypto industry lapped up the judgment instantly, generating a price rally across tokens. But no coin can sustain the price rally for long. We should also note that in June, the SEC approved the first leveraged Bitcoin Futures exchange-traded fund, namely the Volatility Shares 2x Bitcoin Strategy ETF. The SEC has also accepted spot BTC ETF proposals for major traditional finance firms for review, including BlackRock, VanEck, WisdomTree, Fidelity, and Invesco.
London-based Shakopee Asset Management announced the launch of its BTC ETF in Europe. Observers look at these developments as institutional approval of cryptocurrency, and for a long time, the crypto’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 of near $20,000 in December. And though market participation grew, the price rally was short-lived. By early 2018, BTC’s price had fallen back down to around $3k, and 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, exacerbated by the class of Terra Luna and FDX. In fact, in November 2022, Bitcoin was trading at a two-year low of $15,000. For 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.
One way to utilize AI tools like ChatGPT 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. This information can be used in conjunction with other data sets 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 sentiment is positive or negative.
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, traders can ask ChatGPT to give an example of a trading bot that can be used to track BTC’s price volatility using Pine Script, a programming language useful for backtesting trading strategies. However, it is important to note that ChatGPT’s predictions are speculative and should be used in conjunction with other analysis tools.
In conclusion, recent developments have had a significant impact on Bitcoin’s price. Increased institutional approval and regulatory acceptance have contributed to price rallies, but sustaining these rallies has proven challenging. Traders and investors can leverage AI tools like ChatGPT to make better investment decisions by utilizing fundamental and sentiment analysis, as well as technical analysis. While AI tools can provide valuable insights, it is important to consider other factors and not solely rely on AI predictions. The crypto market remains unpredictable, and staying informed and using intelligent trading strategies are key to success.
