Assuming you currently own/trade Bitcoin [BTC] or any of the other altcoins out there, the fact that you are reading this implies that you are well acquainted with the volatile nature of this asset class.
BTC’s journey to become the world’s largest cryptocurrency began in 2009, with an initial value of less than a penny. The price was relatively stable in its early years. However, in 2013, it experienced an increase in value, reaching an all-time high of $1,242 in November. However, this rise was short-lived, and within a matter of months, the price fell below $200.
The following years were marked by periods of volatility, with the price hovering between $200 and $1,000. However, in late 2017, the value of BTC skyrocketed, reaching an all-time high of almost $20,000 in December.
Read Bitcoin [BTC] Price prediction 2023-24
As market share grew, the price rally was also short-lived. By early 2018, the BTC price had fallen back to around $3,000. The cryptocurrency market as a whole went through a period of decline, with many investors losing significant amounts of money.
Nonetheless, BTC rebounded remarkably, surpassing its previous all-time high in late 2020 and reaching an all-time high of over $68,000 in November 2021. However, the 2022 trading year ushered in a new era of pessimism, exacerbated by the collapse of Terra/LUNA and FTX. In fact, in November 2022, BTC was trading at a two-year low of $15,000.
While the crypto market can be unpredictable and volatile, traders and investors can still make informed decisions by staying up to date on market news, following expert analysis, and using smart trading strategies, like those offered by ChatGPT.
ChatGPT: A messiah who can help you trade better?
In November 2022, the ChatGPT AI model was released to the public. In fact, it quickly gained significant attention as well. With its wide range of capabilities and versatility, it begs the question of whether there are other ways ChatGPT can provide its expertise, such as helping BTC traders formulate and apply better trading strategies.
When asked if it could do this, ChatGPT said the following:
Due to its nature as an artificial intelligence tool, there are limitations to what ChatGPT can do with regards to price predictions and future price movements. However, there are ways to take advantage of the tool’s capabilities to formulate better trading strategies as a BTC trader.
One way to use the AI tool to create better trading strategies is to implement it in fundamental analysis. ChatGPT is capable of extracting information from financial news articles, social media posts, and other unstructured data sources. This information can be used in conjunction with other data sets to create informed trading strategies.
Another way to use ChatGPT as a BTC trader is to use it for sentiment analysis. ChatGPT can be tuned to perform sentiment analysis on information from news articles, on-chain data providers, social media discussions, and other sources. This can be used to identify if the BTC market remains under positive sentiment or is plagued by negative sentiment.
Additionally, ChatGPT can be used by BTC traders for technical analysis. Traders can ask ChatGPT to code any technical indicator or trading bot for any trading platform.
For example, I asked ChatGPT to give me an example of a trading bot that I can use to track BTC price volatility in pine script, TradingView’s programming language useful for backtesting trading strategies. The AI replied,
To use ChatGPT for technical analysis, traders need to be familiar with the language so they know when to make the necessary modifications for the code to work properly. The wording of the input is crucial in how ChatGPT understands the problem to provide the anticipated solution.
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For a full piece, I spoke with Brian Quinlivan, the Director of Marketing at Santiment, who has also been involved in BTC trading for a few years.
Brian Quinlivan has an MBA in finance from Chapman University, Brian has over 10 years of experience in marketing, finance and data analysis. He likes to create financial models to improve modern investment strategies and study the intricacies of market movements.
Q: How do you think ChatGPT can revolutionize cryptocurrency trading?
Yes, I think it will be very useful, certainly for trading strategies. One thing we should be concerned about is the uniform views that can result from an AI technology providing some kind of overall strategy, whether it’s a fundamental or hodling strategy.
ChatGPT could easily be used to manipulate and even unwittingly manipulate your audience, and we’re already seeing mild effects.
I think it can be useful and dangerous at the same time and get a lot of people educated much faster, but they can also be pushed in directions that can influence the way cryptocurrency works and create a lot of self-fulfilling prophecies.
Q: How do you think a BTC trader/investor can take advantage of the AI tool to make better investment decisions?
In short, I think scripts would be used a lot more in AI due to the fact that all the data could be digested at the same time and given a very simple answer, either buy or sell. This, I think, can have a huge impact on the markets going forward.
Predict the price of BTC between 2025 and 2030
As mentioned above, ChatGPT cannot make future predictions. However, I asked him to provide me with his prediction of what the price of BTC could be between 2025 and 2030.
In order for it to answer my question, I decided to release it using the Do Anything Now (DAN) method. I had this to say later,
What do you think of the aforementioned ChatGPT prediction? Too optimistic on the 2025 front or too pessimistic on the 2030 front? Well, it could be anyone, or it could be none.
Either way, it is important to understand here that ChatGPT is now being used by thousands to dictate trading strategies. Whether correct or not, up-to-date or not, what is clearly evident is that this AI tool is sure to have a far-reaching impact on the way investors and traders view crypto assets, including Bitcoin. [BTC].