ChatGPT, the first product introduced by the AI industry in 2023, continues to make headlines. According to the latest version, GPT-4, AI could play a role in a scenario where Bitcoin reaches $100,000 by 2024. The question arises: how could Bitcoin potentially hit this milestone? Let’s explore.
On January 1st, a study asked the AI chatbot whether Bitcoin could reach $100,000 this year and how AI might contribute to such an outcome. According to ChatGPT, it’s theoretically possible for Bitcoin to hit $100,000 in 2024 if a series of favorable conditions converge. However, it also cautioned that this prediction is highly speculative.
Following this statement, the AI chatbot elaborated on some general factors that could contribute to such a scenario. These include positive regulatory developments, increased adoption by individuals and institutions, and issues like US dollar devaluation or inflation.
ChatGPT also mentioned that the approval of a spot Bitcoin Exchange-Traded Fund (ETF) could positively impact Bitcoin’s price. AI suggests that a spot Bitcoin ETF approval would enhance Bitcoin’s accessibility and liquidity. Additionally, this fund’s approval could signal regulatory acceptance, potentially encouraging institutional investors to enter the market.
The study then inquired how the field of AI could contribute to Bitcoin reaching $100,000 in 2024. GPT-4 explained that AI could play a role in this potential scenario through its impact on market analysis, trading strategies, and broader technological advancements in blockchain.
ChatGPT noted that AI algorithms could process vast amounts of market data, identifying trends and patterns that analysts might miss. GPT-4 also mentioned that AI-powered trading bots could execute transactions at the most opportune times based on market conditions, reacting much faster than humans in a high-paced market environment. However, ChatGPT warned of significant risks associated with using AI in trading, including hacking and cyberattacks. In 2022, a trading bot made $1 million from an arbitrage opportunity, but a hacker tricked the bot into a malicious transaction, leading to the loss of all funds.