We Asked ChatGPT if Bitcoin (BTC) Can Reach a New ATH This Month
TL;DR
- Bitcoin’s price dipped recently but has begun to recover, raising hopes for a potential rally in May.
- Favorable regulations and increased institutional adoption could fuel a significant BTC price rally (according to ChatGPT).
What Are the Odds of a BTC Rally in May?
Despite the promising start of the year and the surge to an all-time high price in March, Bitcoin’s progress stalled in April. The primary cryptocurrency did not start May on the right foot, declining to $56,800 (the lowest level in nearly two months).
The last couple of days were slightly more optimistic, with BTC reclaiming some lost ground and briefly spiking towards the $60K mark. As such, we decided to ask ChatGPT whether the asset can experience a more substantial rally and tap a new ATH throughout this month.
While the popular AI-powered chatbot did not rule out the possibility, it outlined numerous factors that need to take place for such a price expansion.
Favorable regulatory news was mentioned as a top contributing element. ChatGPT estimated that the approval of additional ETFs may result in a resurgence. Another regulatory development that could positively impact the entire cryptocurrency market is a decisive victory for Ripple in its legal battle against the SEC.
Recall that the trial between the entities started at the end of April, with the company previously securing three partial court wins.
The second most important factor named by ChatGPT is institutional adoption. “Increased adoption by large institutions, such as investment funds, banks, or corporations, can lead to significant inflows of capital into Bitcoin,” the chatbot claimed.
Technological advancements, market sentiment, macroeconomic conditions, and supply dynamics were also added to the list of essential elements.
The Signs that BTC’s Surge is Incoming
Multiple indicators suggest that Bitcoin’s correction might not last long. One example is the MVRV (Market Value to Realized Value) metric, which has been experiencing a downfall since the beginning of April.
A score above 3.5 suggests that the BTC price is close to its peak, whereas a result below 1 warns about a bottom. The MVRV ratio plunged to 1.87 on May 2, flashing the buy signal for the asset.
Another sign is the BTC exchange netflow, which has been predominantly negative in the past two weeks. Shifting from centralized platforms to self-custody methods is considered bullish since it reduces the immediate selling pressure.
Perhaps the most obvious element hinting that a Bitcoin bull run is just around the corner is the halving that took place last month. The event, following which the miners’ rewards for validating blocks on the blockchain were slashed in half, has historically been a precursor of a major revival of the entire crypto sector. Those willing to learn more about its specifics, feel free to check our dedicated video below:
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