The cryptocurrency market has recently experienced a downturn, with Bitcoin (BTC) falling below the critical support level of $40,000, causing concern among investors. Despite expectations for a potential surge related to a spot exchange-traded fund (ETF), investors are now searching for a trigger that could initiate a rise. To gain insight into Bitcoin’s potential price trajectory, we consulted Google’s artificial intelligence, Google Bard, which indicates various possibilities influenced by both bearish and bullish factors.
According to Google Bard, high inflation narratives, a high interest rate environment, and increasing regulations are leading causes of Bitcoin’s decline. The AI also considers the possibility of investor focus shifting to Ethereum (ETH), potentially impacting Bitcoin’s value. Google Bard suggests that these factors combined could push Bitcoin down to $35,000 or lower.
However, Google Bard also outlines potential catalysts for a bullish scenario. The upcoming block reward halving in April, which will reduce new BTC supply, could trigger a significant recovery if demand remains steady or increases. Additionally, increased institutional adoption and positive news flow could drive Bitcoin to new heights, potentially reaching its all-time high of around $69,000.
Google Bard also highlights the ongoing struggle between bulls and bears to control Bitcoin’s price, suggesting that the price could remain neutral, fluctuating between $35,000 and $45,000 for a significant part of the year. Market participants are currently leaning towards a continued decline following Bitcoin’s loss of the $40,000 support, with reports indicating that whales have accelerated dumping approximately $3 billion worth of BTC on exchanges in the past two weeks.
Attention is now turning to the block reward halving, historically a significant bullish catalyst, as spot Bitcoin ETFs in the US have failed to act as major catalysts in the short term. The impact of this catalyst is anticipated to be seen in April. Currently, Bitcoin is trading below $40,000, with immediate price action focused on whether bulls or bears will prevail in bringing the price back to the $40,000 level, necessitating caution among leveraged investors due to the potential for volatile price movements.
