In typical crypto style, Bitcoin has accustomed us to constant fluctuations that cause the Bitcoin price to move back and forth between staggering spikes and resounding crashes. Unfortunately, it’s been a while since Bitcoin hasn’t broken any positive records. The last Bitcoin bull run happened in 2021 when the cryptocurrency surged to a whopping $67,549. Things started going downhill from there with the onset of the latest and harshest crypto winter to date, so crypto enthusiasts miss the good old days when the king of crypto would rally, crossing one threshold after another.
2023 has been a much better year for Bitcoin than the previous one, as the coin has managed to recover part of its lost value. But despite this slight improvement, Bitcoin is still well below its previous highs. Therefore, the entire crypto community is now wondering how long it’s going to take until Bitcoin gets back on track and enters a new upward trajectory.
ChatGPT Weighs In
As you may know, predicting crypto prices has never been an easy endeavor given the multitude of factors that influence price movements in the market, from supply and demand to utility, economic conditions, media coverage, and market sentiment. Analysts and financial experts have struggled to develop algorithms and strategies that could help them come as close as possible to the truth, but they have been largely unsuccessful.
However, things have changed a lot since digital currencies entered the financial realm and now we’ve got a brand-new tool in the toolbox of financial forecasting that could help us figure out what the future holds for Bitcoin and the crypto industry as a whole. The tool we’re referring to is none other than ChatGPT. The already famous AI chatbot developed by OpenAI uses a remarkably advanced language-based model to handle complex content and deliver responses that mimic human-like dialogue.
So far, ChatGPT’s cutting-edge capabilities have proven extremely useful in language translation, customer support, content generation, coding, and many more areas of activity. And while AI doesn’t work like a crystal ball that holds the answer to everything, it can also be used to provide insights and make predictions on all sorts of topics, Bitcoin price included. It wasn’t long until ChatGPT was put to test regarding the factors that could potentially lead to a new bull run for Bitcoin, so let’s take a look at what the AI chatbot had to say about it.
Greater Acceptance From Businesses And Institutions
According to ChatGPT, one of the factors that could signal the approach of a new Bitcoin bull run is the widespread adoption of the coin, both at the market and institutional levels. The AI points out that having a greater number of businesses accept Bitcoin payments for the products and services they offer would create a positive sentiment in the market and that could drive demand up.
As for institutional adoption, Bitcoin could greatly benefit from becoming a legitimate and regulated investment venue as that would encourage more companies to invest in it. We’ve already seen this happen with the last bull run when large players such as Tesla or MicroStrategy took an interest in the asset and bought large shares of it, causing its price to rise. If these circumstances recur, we might get a similar result.
Although Bitcoin has the first-mover advantage and has managed to remain the leading crypto in the market for so many years in a row, the network has often been labeled as outdated and has received ample criticism for its lack of innovation, especially when it comes to scalability and sustainability.
A lot of analysts have argued that Bitcoin requires a makeover to maintain its relevancy and appeal as more crypto projects emerge, threatening its rule, and it appears that ChatGPT agrees with this statement. The AI mentioned that the network engagement and adoption rates increased following the Taproot upgrade, the most notable one in years, which introduced a series of new features meant to improve the network’s privacy, efficiency, scalability and security. These types of upgrades could enhance the platform’s appeal and bring in more traders and investors.
Clear Regulatory Guidance
Bitcoin started out as an inherently unruly asset that resided in a financial Wild West and got closer to broad acceptance along the way. However, for Bitcoin’s transformation to come full circle and become a mainstream form of investment and finance, regulatory clarity is required.
At the moment, governments around the world are still fumbling to regulate Bitcoin and the rest of the cryptocurrencies available in the market. Some countries have banned the use of digital currencies, while others are actively working towards creating solid regulatory frameworks, but for now, Bitcoin remains in a legal grey area. ChatGPT predicts that the development of clear crypto regulations would provide a safer and more stable environment for crypto users and investors, supporting market growth and subsequently fueling a rise in Bitcoin’s price.
The Halving Event
It hasn’t gone unnoticed by the AI chatbot that the Bitcoin halving is approaching. Written into the platform’s algorithm since its inception, the halving event cuts the reward for mining Bitcoin in half, hence the name, and it occurs once every 210,000 blocks or approximately every four years. The last Bitcoin halving took place in May 2020, so the next event should happen in April 2024.
Considering that each of the three halvings that Bitcoin has undergone so far was shortly followed by a bull run, ChatGPT points out that history could repeat itself next year when the halving could mark the start of a new bull run.
Even though ChatGPT is not an infallible tool, the theories it has provided regarding Bitcoin’s chances of entering a new bull market seem to make perfect sense. However, one should keep in mind that these are all hypothetical situations, and there are many other factors at play that could influence Bitcoin’s trajectory. So, as usual, staying informed and being cautious is the smartest approach for all crypto users.