Key Takeaways:
Bitcoin (BTC) started 2024 on a high note, with its price gradually rising at the beginning of the year and following the launch of the spot BTC exchange-traded funds (ETFs), going on a parabolic run that saw the apex cryptocurrency hit an all-time high of $73,500 by mid-March.
Bitcoin Struggling to Kick Off Bull Run Despite Rising Demand Post-Halving
However, things haven’t been smooth sailing for the world’s largest cryptocurrency ever since. BTC suffered a massive 15% dump in April, even briefly falling below the $60,000 mark. Bitcoin is currently trading between the $60,000 and $64,000 range, struggling to kick off the next bull run.
Last month also saw the supply of Bitcoin reduce by half following the quadrennial ‘Halving’ event on its blockchain. Typically, the halving fuels a run to the upside as demand for the cryptocurrency rises, however, this time despite the high demand, the market was in the red.
Furthermore, the spot Bitcoin ETFs, which have been among the most successful ETF launches in history, failed to trigger any significant bullish move since the halving. To date, the funds tracking the price of BTC have accumulated a net inflow of $14 billion in less than 100 trading days.
Contrary to the historic price trend suggestion of a historic bull run, the current market sentiment points to certain speedbumps. As such, we asked ChatGPT to predict when it thinks the Bitcoin bull run will begin.
The generative AI-powered chatbot claimed that it is quite speculative to predict the price of Bitcoin as it depends on several macroeconomic factors.
ChatGPT assumes that technological developments, increased adoption, positive investor sentiment, growing public interest, geopolitical occurring, and others may trigger the upcoming bull run.
ChatGPT Claims US Fed’s Pivot to Reduced Interest Rate Regime Could Trigger Crypto Bull Run
The chatbot did touch on two vital elements that would have a positive influence on the price of Bitcoin: the Federal Reserve’s move to slash borrowing interest rates and the outcome of the lawsuit between Ripple Labs and the US Securities and Exchange Commission (SEC).
Following the onset of the COVID-19 pandemic and related economic lockdowns, the Fed initiated an aggressive measure to address the concerns of rising inflation in the world’s largest economy.
The American central bank introduced multiple interest rate hikes, which led to a massive decrease in investments in riskier assets such as Bitcoin and other cryptocurrencies.
With the fear of inflation starting to mellow in the States, some financial experts predict that the Fed may pivot to lowering interest rates on the US dollar, a move that could initiate a Bitcoin and crypto bull run.
ChatGPT noted that lowered interest rates can stimulate money flow into Bitcoin by altering investor behavior and adjusting risk appetites. When these factors combine, it can contribute to upward movements in the leading crypto asset’s price, added the chatbot.
ChatGPT Believes a Win Over the SEC by Ripple Could Propel the Crypto Market to New Heights
ChatGPT also highlighted that a decisive triumph for Ripple in its legal battle against the SEC may also fuel a revival for the overall cryptocurrency market.
The case surrounds an accusation by the US financial watchdog that Ripple, the issuer of the XRP token, sold its cryptocurrency to investors without registering it as a security token first. The SEC considers all cryptocurrencies apart from Bitcoin and Ethereum as securities and wants to regulate them the same way as stocks and bonds.
However, Ripple argued that cryptocurrencies are not securities and stood its ground by providing evidence in the court of a former SEC official stating the same. The court found no wrongdoing on Ripple’s part as the company had sold the tokens through an exchange, which is not considered a violation of the Federal Securities Act.
As the case entered its trial phase last month, some believe that Ripple may emerge victorious on the back of the partial court wins it secured against the SEC throughout 2023.
ChatGPT said that a win for Ripple may be viewed as a defeat for potential cryptocurrency overreach by regulatory bodies like the SEC, and could boost investor confidence in the resilience of major cryptocurrencies against regulatory challenges.
The chatbot concluded its assumption by stating that such an event could encourage both retail and institutional investors to increase their holding in major cryptocurrencies, including Bitcoin.
AI Suggests Initial Signs of Bullish Trend Could be Visible Starting June 2024
The AI also predicted that it expects initial signs of a bullish trend in June as the market starts to react to the reduced supply of Bitcoin post-halving. This would set a charge for faster adoption of BTC by investors than what has been observed in the market during previous cycles.
Furthermore, in November, the chatbot expects a “more pronounced and sustained” uptrend to take shape, one that could potentially push the market towards new-found heights.
This period will be crucial for the market as it marks a potential breakout from the current period of consolidation and could be bolstered by increased trading activity and investor confidence.
At the time of writing, Bitcoin (BTC) is trading at $60,914 – down 0.1% in the last 24 hours.
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