Bitcoin is a popular, rapidly increasing cryptocurrency and as such, traders and investors alike actively monitor its price movement. Bitcoin [BTC]’s market journey began in 2009 and since then, the price has seen its share of volatility, with the value ranging from less than a penny to a peak of nearly $20,000 in December 2017.
Recently, the world’s biggest crypto coin surged to a new all-time high of over $68,000, although the following month saw a significant collapse in value due to the rapid-spike of Terra/LUNA and FTX. As of November 2022, BTC is currently trading at a two-year low of $15,000.
In light of these events and the unpredictable nature of the cryptocurrency market, traders require help in devising successful trading strategies to handle complex, ever-changing market conditions. ChatGPT is an AI model that provides traders such aid, offering a wide range of capabilities to optimize trading strategies.
ChatGPT has the capacity to perform fundamental analysis, sentiment analysis, and technical analysis to assist BTC traders in making informed decisions. It can extract insights from news articles, social media posts, on-chain data providers, and other unstructured data sources. Additionally, it can also code technical indicators and trading bots for trading platforms like TradingView.
Brian Quinlivan, Director of Marketing at Santiment, offers valuable insights into ChatGPT. With an MBA in finance from Chapman University and a decade of experience in marketing and financial analytics, Brian quips that the AI technology could revolutionize cryptocurrency trading by giving simple buy/sell answers based on data analyzed. Despite the potential for it to be abused by those wanting to manipulate or persuade the market, he believes the technology can instill education and quicken the pace of the crypto industry.
ChatGPT was unable to provide a definitive answer on how soon BTC would reclaim the $30,000 psychological price mark. It suggested however that it could potentially reach new all-time highs between 2023-2024 as its adoption by companies and as a hedge against inflation grows.
The AI model, powered by advanced Natural Language Generation (NLG) capabilities, is already gaining recognition and appreciation from traders around the world. It is providing an efficient and useful way of helping cryptocurrency traders form and apply trades wisely.
