Ambi Crypto recently reported how the month of August was somewhat of a bloodbath for Bitcoin as it was rife with flood and negative sentiment. This caused the coin to shed 10% of its value in the past 30 days. However, recent legal victories have given a respite to the crypto world, with BTC floating above the $27,000 price mark for a few days. But that enthusiasm soon died down, with token prices plummeting at press time.
BTC was trading at $25,767, at the king coin’s earlier high of $31.7K within a day of Ripple securing a partial victory in its legal battle with the U.S Securities and Exchange Commission on July 13th. But it failed to sustain the price rally. 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 and through programmatic sales did not constitute investment contracts, hence it is not a security in this case. However, the court also ruled that the institutional sale of the XRP tokens violated Federal Securities laws.
The crypto industry lacked up the judgment, instantly generating a price rally across tokens. We should also note that in June, the SEC approved the first leveraged Bitcoin Futures exchange-traded fund, namely the Volatility Shares two Bitcoin strategy ETF. The SEC has also accepted the spot Etc ETF proposals from major traditional finance firms for review, including BlackRock, Bitwise, Vanek, Wisdom Tree, Fidelity, and Invesco. London-based Jacoby Asset Management recently announced the launch of its Bitcoin ETF in Europe.
Observers look at these developments as institutional approval of cryptocurrency. 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 nearly $37K 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 $3,000.
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 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. One way to utilize AI tools like ChatGPT is by deploying them towards fundamental analysis. GPT 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 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, ChatGPT can be used to track BTC’s price volatility and pine script trading. The use of programming languages is useful for backtesting trading strategies.
It’s important to note that while ChatGPT can provide insights and assist in formulating trading strategies, it cannot make future predictions. Increased regulation and government scrutiny could also impact the market. However, despite the challenges, BTC has shown resilience and investors are hopeful for its future. At press time, BTC was trading at $25,767, and investors are hoping that the token will at least reach the $30,000 price mark again. While BTC’s on-chart metrics don’t indicate a price rally in the short term, AI models predict that BTC will reach surprising heights during 2023-24, potentially hitting $80K to $120K.
In conclusion, the rollercoaster ride of Bitcoin continues, with its price fluctuating and legal battles shaping its future. Traders and investors can leverage AI tools like ChatGPT to gain insights, formulate trading strategies, and stay informed. However, it’s important to approach the market with caution and stay updated on market news and regulations.
