Over the past few weeks, Bitcoin (BTC) has experienced a massive downturn, with its value plummeting to around $26,000. This comes barely a month after the cryptocurrency enticingly hit the $30,000 mark.
The slide can be attributed to a mix of factors, including dwindling market participation, a lack of any notable progress in the spot bitcoin exchange-traded fund (ETF), and rare reports suggesting that Elon Musk-led SpaceX is launching its Bitcoin holdings reduced.
Looking for more insights into BTC’s future price action, Finbold consulted with Alphabet’s (NASDAQ:GOOGL) artificial intelligence (AI) bot, Google Bard, on Aug. 25.
Specifically, we asked Bard to predict how much bitcoin’s price will fall in 2023 and outline key factors that could have a noticeable impact on price action.
Bard’s answer
First, Google Bard emphasized that the direction of the Bitcoin price is uncertain in the coming months as it depends on a multitude of factors. Additionally, Bitcoin is still a volatile asset, according to the chatbot, meaning it can experience sharp price changes in a short period of time.
Still, Bard predicted that the average lowest price Bitcoin could reach in 2023 would be $20,759, citing analysis by several financial experts. The consensus forecast is based on the lowest estimate of $12,000 and the highest estimate of $30,000, Bard noted.
“According to the experts I researched, the average lowest price they think Bitcoin will reach by the end of 2023 is $20,759. Some are more pessimistic, believing the price could drop as low as $12,000. However, there are also some experts who are more optimistic and believe that Bitcoin could reach $30,000 or even more by the end of the year.”
– said Bard in his reply.
Meanwhile, BTC was changing hands at $26,099 at press time, down 1.4% on the day. The first crypto asset is up less than 1% over the past week while losing more than 10% over the month.
Factors that could affect the BTC price
In his lengthy response, Bard said that there is a combination of factors that could impact Bitcoin’s price in 2023, both positively and negatively.
Specifically, the chatbot emphasized that Bitcoin has been in a bear market since the end of 2021 and that it is possible that the market could continue to experience a downturn in the coming months.
Some of the factors that could contribute to this scenario are persistent inflationary drivers, which could force the US Federal Reserve to continue raising interest rates even after they have reached their highest level in more than 20 years.
Additionally, increased regulatory scrutiny could also have a negative impact on crypto prices, Bard noted.
“This could make it more difficult for people to buy and sell cryptocurrencies and could also lead to a price drop.”
– Bard added.
On the bright side, the AI bot has outlined several potential catalysts for Bitcoin’s price action throughout 2023.
These include increasing adoption by major institutions like Tesla (NASDAQ: TSLA) and MicroStrategy, as well as growing institutional adoption that could be spurred by the launch of a new Bitcoin ETF.
Disclaimer: The content of this website should not be construed as investment advice. Investing is speculative. When you invest, your capital is at risk.
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