Recent times have seen a significant decline in the value of Bitcoin (BTC), which has dropped to about $26,000. This incident occurs just a month after the interesting cryptocurrency's close call with the $30,000 mark.
The decline's direction can be attributed to a variety of factors, including declining market activity, the obvious lack of significant developments regarding the spot Bitcoin exchange-traded fund (ETF), and sporadic reports suggesting that SpaceX, under Elon Musk's direction, reduced its Bitcoin holdings.
On August 27, TOA ask Google Bard, a piece of artificial intelligence (AI) developed by Alphabet (NASDAQ: GOOGL), in an effort to gain more information about the future price trajectory of bitcoin.
Our request to Bard to forecast the size of Bitcoin's price decrease in 2023 and identify key factors that could have a significant impact on its price dynamics is noteworthy.
Bard's response
In particular, Google Bard emphasized that the direction of Bitcoin's price in the coming months is still unknown and depends on a wide range of factors. The AI interlocutor also emphasized that Bitcoin is a volatile asset and is prone to rapid price fluctuations over a brief period of time.
However, Bard predicted that the mean nadir of Bitcoin's value in 2023 may reach $20,759, citing a careful examination carried out by numerous financial specialists. This collective prediction uses Bard's comparison of nadir estimations of $12,000 and zenith estimates of $30,000 as a starting point.
According to the experts I have researched, the average lowest price that they think Bitcoin will reach by year-end 2023 is US$20,759. Some are more bearish and believe it could drop as low as US$12,000. However, there are also some experts who are more bullish and believe that Bitcoin could reach US$30,000 or even higher by the end of the year.
– Bard said in its response.
At the time of this writing, BTC was trading at $26,099 and had lost 1.4% of its value from the previous day. The first cryptocurrency asset saw a gain of just under 1% over the previous week, compared to a decline of more than 10% over the course of the month.
Factors that could influence BTC price
Bard explained in great detail how a variety of variables may potentially influence Bitcoin's value in 2023 in both positive and negative ways.
The AI discussion partner's focus on the fact that Bitcoin has been in a bear market since the latter half of 2021 is noteworthy, and that it is still possible for the market to continue to decline in the next months.
Among the many factors that can lead to this outcome are persistent inflationary forces that might persuade the US Federal Reserve to keep raising interest rates even after they have reached their highest level in more than 20 years.
Furthermore, Bard emphasized that increased regulatory scrutiny can have a negative effect on bitcoin valuations.
This might make it harder for users to buy and sell cryptocurrencies and might also cause their price to drop.
– Bard added.
Positively, the AI conversationalist identified a number of probable drivers that could influence Bitcoin's price trajectory over the course of the remaining months of 2023.
These triggers include increased institutional acceptance that may be sparked by the introduction of a novel Bitcoin ETF, as well as increased use by well-known institutions like Tesla (NASDAQ: TSLA) and MicroStrategy.
Disclaimer: Nothing posted on this platform should be interpreted as offering investment advice. Investment choices come with a risk to your capital and involve some degree of speculation by nature.
