Following Bitcoin’s (BTC) impressive rally to nearly $69,000 in late 2021, the maiden cryptocurrency has experienced several price fluctuations, leaving the market anticipating its next potential record-breaking milestone.
Many experts agree that the $100,000 level is Bitcoin’s next possible record target, fueling further speculation on when this milestone might be reached. In terms of predicting the next Bitcoin price action, generative artificial intelligence (AI) platforms like ChatGPT are increasingly being utilized to offer insights.
In light of this, Finbold sought insights from the latest generative AI offering, Google’s Bard. We posed the question to Bard: What can propel Bitcoin to $100,000?
Bard acknowledged the possibility of Bitcoin reaching $100,000 and identified four key drivers that could propel BTC to the level. However, the tool cautioned that it is not guaranteed that Bitcoin will hit the $100,000 mark.
Bitcoin’s drivers to $100k
Firstly, Bard recognized the role of mass adoption in driving the asset to new record highs. The tool noted that demand for the asset would likely increase as more individuals invest in Bitcoin, pushing the price up.
Secondly, Bard highlighted that institutional investors are a major catalyst for a Bitcoin rally. It is worth noting that Bitcoin’s previous record high was partly fueled by institutions like PayPal (NASDAQ: PYPL) and electric vehicle manufacturer Tesla (NASDAQ: TSLA) entering the cryptocurrency space. According to Bard:
“If institutional investors, such as pension funds and hedge funds, were to invest in Bitcoin, it would likely lead to a rise in the price. This is because institutional investors have a lot of money to invest, and their investments can significantly impact the price of assets.”
Furthermore, the AI platform suggested that increased government adoption of Bitcoin as a legal tender can boost investor confidence. In this case, the tool highlighted that government involvement in Bitcoin can legitimize the asset while getting a boost from its influence and control over the economy.
Lastly, Bard emphasized the importance of positive news in driving Bitcoin’s value. It noted that positive news could lead to excitement around digital assets.
Bitcoin price analysis
It is essential to consider that Bitcoin is currently in the process of recovering from the bear market experienced last year, which was influenced by concerns surrounding regulations and macroeconomic factors such as inflation. Currently, Bitcoin is trading within a consolidation phase, and its rally beyond $30,000 has been impeded by recent regulatory scrutiny.
By press time, Bitcoin was trading at $25,949, reflecting a weekly loss of approximately 5%.
Moreover, Bitcoin’s technical analysis indicates a bearish outlook. According to TradingView’s one-day gauges, the sentiment suggests a ‘sell’ with a score of 14. The moving averages indicate a ‘strong sell’ sentiment at 12, while the oscillators remain neutral with a score of 7.
Currently, the short-term price movement of Bitcoin is heavily influenced by the regulatory actions taken by the United States Securities and Exchange Commission (SEC).
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.