25 May 2023 11:34, UTC
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Generative artificial intelligence (AI) systems continue to gain popularity following the emergence of ChatGPT.
Google’s Bard is now the latest offering in this space, and although it is still in its experimental stage, its language processing capabilities are already being used in the world of cryptocurrencies, with the tool being leveraged to generate possible price movements for various digital assets.
In this line, Finbold asked Bard to predict the possible price outcome for Bitcoin (BTC) by the end of 2023. To begin with, Bard clarified that it is impossible to determine Bitcoin’s price with certainty, as the asset’s movement is influenced by factors such as the overall state of the global economy. However, on the possible Bitcoin price, Bard invoked both bearish and bullish predictions citing experts in the industry. According to Bard:
“Based on these factors, some experts believe Bitcoin could reach $50,000 by 2023. However, others believe it could fall back to $20,000 or even lower. Ultimately, the price of Bitcoin is unpredictable and will depend on several factors.”
At the same time, the tool shared some of the notable price predictions by renowned institutions and platforms for the end of 2023. For instance, it noted that CoinPriceForecast places Bitcoin’s price at $35,085, Finder.com at $35,459, and Binance crypto exchange at $26,364.82.
Indeed, Bitcoin is still attempting to exit the 2022 bear market that saw the maiden crypto plunged by almost 70% from its all-time high.
Factors influencing BTC price
Bard pointed out that if the economy is doing well, investors may be more willing to invest in risky assets such as Bitcoin.
Secondly, the tool highlighted the importance of institutional adoption of Bitcoin. According to Bard, increased institutional interest in Bitcoin can potentially increase prices. It is worth noting that the last Bitcoin all-time high of almost $69,000 was partly triggered by the increased entry of institutions into the space.
Elsewhere, Bard acknowledged the importance of Bitcoin’s related technology in influencing the asset’s value as it will make it easier to use the maiden crypto.
Bitcoin price analysis
By press time, Bitcoin was valued at $26,240 with daily losses of about 2%. On the weekly chart, BTC is down over 4%.
Meanwhile, Bitcoin’s technical analysis remained bearish, with a summary of the one-day gauges retrieved from TradingView aligning with the ‘sell’ sentiment at 15. Moving averages are for a ‘strong sell’ at 12, while oscillators are for ‘sell’ at 3.
Despite Bitcoin’s gloomy outlook, onchain metrics point to increased adoption. In particular, data retrieved from Coin Metrics indicates that 40 million BTC addresses now have a balance greater than $1. Notably, with Bitcoin’s depressed prices, the data can be viewed as an indicator of the network’s faster growth.
At the same time, Bitcoin’s downward trajectory has correlated with the traditional sector products that have been battered by the prevailing macroeconomic factors. Interestingly, there are indicators that Bitcoin’s appeal among investors as a portfolio might rise again after the asset’s correlation with the NASDAQ index dropped to a 17-month low.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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