After $30K: 7 Things For BTC Reach $40K According To ChatGPT
ChatGPT thinks that there are seven things that could push the price of Bitcoin to $40,000.
The price of Bitcoin has been going through the roof lately, rising by more than 20% in the last week alone.
The cryptocurrency is already selling at around $30,000, which has brought back the bullish mood in the industry after days of painful drops.
And while analysts are presenting their technical theories about where BTC could go next, we decided to talk to ChatGPT to find out what needs to happen for it to hit the coveted $40K mark.
7 Reasons Why Bitcoin Could Reach $40,000: ChatGPT
First, it’s important to remember what ChatGPT said about Bitcoin’s instability. The AI-based model says it’s “challenging” to guess specific price changes, but it does list a few things that could affect the price.
So, here’s what it has to say about the question:
What needs to happen for Bitcoin to hit $40K?
Market Demand
ChatGPT starts off by saying something obvious: “An increase in demand for Bitcoin on the market could cause its price to go up.” Well, yes, that’s usually how it goes.
The chatbot says that positive feelings, increased interest from institutional investors, and more people using Bitcoin could all help to increase demand and, in turn, the price of Bitcoin.
Changes in the rules
It’s safe to say that the regulatory environment, especially in the US, has been at best questionable. The Securities and Exchange Commission of the country has gone after some of the biggest companies, like Binance and Coinbase.
“Favorable regulatory developments, such as the recognition and acceptance of Bitcoin by governments or regulatory bodies, could boost investor confidence and attract more partictipants to market. – says ChatGPT.”
It’s interesting to note that the cases against Coinbase and Binance don’t really have anything to do with Bitcoin. However, any damage to these companies will hurt the industry as a whole.
Technological advancement
Bitcoin is known for being able to adapt to changes in technology, and its core features have stayed the same for years. BTC supporters point to this as one of its biggest benefits.
But because of things like the Ordinals protocol, there is more and more talk about whether or not the core could handle some improvements.
ChatGPT says that “significant technological advances, such as solutions for scalability or improvements to the speed and efficiency of the Bitcoin network, could have a positive effect on its price by making it more useful and attracting more users.” This could be done through the Lightning Network.
Macroeconomic Factors
In the past few years, the global economy has been like a roller coaster, just like the cryptocurrency market. Many people think that more rough times are on the way.
Taking all of this into account, the robot replies:
“Global economic conditions and monetary policies can influence cryptocurrency prices. Factors such as inflation, geopolitical events, or economic uncertainty may drive investors towards Bitcoin as a hedge against traditional financial instruments, potentially increasing its price.”
Market Sentiment and Media Influence
ChatGPT seems to think, though this is a bit more of a guess, that positive news coverage, endorsements from important people or institutions, and the general mood of the market could all lead to a “buying frenzy.”
We saw that not long ago.
BlackRock, which is the biggest asset manager in the world, has asked the US Securities and Exchange Commission to start a spot Bitcoin ETF. The market saw that as a sign that the product was worth what it was worth and that it was a real thing. The price didn’t wait long before it changed.
Bitcoin Halving
The block payout for Bitcoin is cut in half during a process called “halving.” This basically cuts the amount of BTC in circulation by half, which also cuts its pre-programmed growth by the same amount.
It’s something that happens every four years, and the next one is scheduled for 2024.
The price of Bitcoin has been affected by this event in the past because it reduces the number of newly made coins hitting the market, says ChatGPT.
Overall Crypto Market Conditions
Last but not least, the AI-based language model sees the link between BTC and the cryptocurrency market as a whole. It says that for Bitcoin to do well, the cryptocurrency market as a whole must be in good shape.
If the market as a whole goes on a bull run or a positive trend, it could be good for Bitcoin to hit $40,000.
Conclusion
ChatGPT also says that the price of BTC can be affected by a wide range of events and changes in the market that are hard to predict. But it can be fun to test the artificial intelligence of a robot that seems to know almost everything.
