The recent launch of OpenAI’s text-based AI tool, ChatGPT, sparked renewed interest in generative AI bots, with Google’s Bard leading the way. Bard has already proven its worth in cryptocurrency market analysis, particularly in Bitcoin (BTC). With Bitcoin’s price currently stagnant after losing the $30,000 level, Bard was sought out by Finbold to provide insights into the future of the leading decentralized finance (DeFi) asset after its 2024 halving as of July 25.
Factors influencing Bitcoin’s price post-halving
Bard’s analysis revealed several factors that suggest Bitcoin’s price could reach new highs after the halving:
1. Halving Event: The upcoming halving itself is expected to impact Bitcoin’s price significantly. With the halving reducing the rate of new Bitcoin issuance, supply becomes limited, potentially driving up demand and, consequently, the price.
2. Global Adoption: Increased global adoption of Bitcoin is another factor poised to influence its price. As more individuals and institutions embrace Bitcoin as a legitimate investment and payment method, demand will likely rise, increasing its value.
3. Favorable Regulatory Frameworks: Favorable regulatory environments in different countries can play a pivotal role in Bitcoin’s price growth. Clear and supportive regulations can boost investor confidence and attract more participants to the cryptocurrency market.
Challenges to Bitcoin’s post-halving gains
Bard also highlighted potential obstacles that could hamper Bitcoin’s price growth after the halving:
1. Bear Market Possibility: Following the halving event, a bear market could hinder Bitcoin’s upward momentum. Market sentiment and macroeconomic factors may impact the cryptocurrency market’s overall direction.
2. Competition from Altcoins: The rise of competing cryptocurrencies could threaten Bitcoin’s dominance. As new digital assets emerge and gain traction, they may divert some investment away from Bitcoin.
Bitcoin price predictions
Bard provided a range of Bitcoin price predictions from different sources, shedding light on the varying outlooks for the cryptocurrency’s future:
1. PlanB’s Stock-to-Flow Model: Crypto analyst PlanB’s popular Stock-to-Flow (S2F) model predicts a Bitcoin price of $100,000 by 2024. This model factors in the halving and scarcity of Bitcoin to estimate its value.
2. Standard Chartered’s Projection: British multinational bank Standard Chartered foresees Bitcoin reaching $120,000 by 2024, reflecting its optimism about the cryptocurrency’s potential.
3. ZebPay’s Conservative Estimate: India’s oldest cryptocurrency exchange, ZebPay, holds a more conservative stance, setting Bitcoin’s price at $40,000 by 2024.
The current state of Bitcoin
As of the latest information, Bitcoin’s price is $29,125, representing a 2.33% decline in the last 24 hours and a 2.97% loss over the previous seven days. On the monthly chart, Bitcoin has experienced a 5.20% drop.
Bitcoin currently encounters strong support at $27,583, while its resistance level is $31,010. The realization of the predicted price thresholds will hinge on combining the aforementioned factors in the cryptocurrency market.
As Bitcoin’s price meanders amid uncertain market conditions, Google’s Bard AI tool has shed light on potential scenarios after the 2024 halving. With factors like the halving event, global adoption, and regulatory developments influencing Bitcoin’s trajectory, the cryptocurrency’s future remains subject to ongoing developments in the broader financial landscape. Meanwhile, various price projections underscore the diversity of opinions about Bitcoin’s prospects, reflecting optimism and caution. As the cryptocurrency community navigates through post-halving terrain, market participants will closely observe how these factors converge to shape the future of Bitcoin and its role in the ever-evolving digital economy.
