Bitcoin Cash (BCH) had a bright start in 2023 H2 after a 260% surge in late June, followed by a 26% retracement. In this context, Finbold asked ChatGPT-4 to predict the price of BCH for early 2024.
Notably, Bitcoin Cash is trading at $242 by press time, meaning 26.55% in losses since 2023’s highs at $329.71. Before that, BCH went from $90.77 to the yearly highs for a 263.24% price surge.
At this point, Bitcoin Cash shows a strong momentum within its weekly Relative Strength Index (RSI). Meanwhile, its main competitor and market leader, Bitcoin (BTC), faces challenges and opportunities.
The former, being a massive increase for its transaction fees, surpasses yearly highs of $31 per transaction and the global average income of $26 per individual. Nevertheless, Bitcoin has also seen an increased interest from institutional investors, propelling its speculative demand.
On the other hand, Bitcoin Cash was recently delisted by Fidelity-based institutional exchange EDX Market. BCH’s listing by EDX triggered the aforementioned pump in June, making its delisting a relevant loss.
ChatGPT-4 predicts BCH price in early 2024
In the meantime, Finbold asked the GPT-4 Turbo AI model to give a bullish, neutral, and bearish price prediction for BCH.
The AI sees BCH at $500 by early 2024, considering high BTC fees and the coming halving for both cryptocurrencies. This would mean a 106% gain for current buyers, while its bearish projection has a downside of 25% to $180.
Interestingly, the latter considers a higher focus on Bitcoin, the leader, facing a spot Bitcoin ETF approval summed up with EDX delisting.
When asked to elaborate on each prediction, here is what ChatGPT-4 answered:
Bullish Scenario Justification: Anticipating the halving event, investors might buy BCH expecting a supply shock and price increase, as historically seen with BTC. The high BTC fees could accelerate a migration to BCH for cheaper and quicker transactions. If substantial enough, this demand boost might push BCH prices to $500 by early 2024.
Neutral Scenario Justification: Should the current market sentiment persist, without significant external influences, it’s likely BCH will experience modest growth. With no major catalysts for adoption or investment, the price would only slightly fluctuate, stabilizing around $260.
Bearish Scenario Justification: The approval of a BTC ETF could overshadow BCH, as institutional investors would likely favor the more recognized BTC. BCH being delisted from an institutional exchange suggests decreasing institutional support. The lack of significant adoption and overshadowing by BTC might lead to reduced demand and a decrease in BCH price, falling to $180.
— GPT-4 Turbo
Conclusion
The AI also described Bitcoin Cash, listing fundamental advantages and disadvantages:
Bitcoin Cash (BCH) is a cryptocurrency that forked from Bitcoin (BTC) in 2017. The split arose from a disagreement over block size, with BCH supporters advocating for larger blocks to enhance transaction capacity. Currently, BCH has a block size of 32 MB compared to BTC’s 1 MB, allowing for lower fees and faster transaction times.
Advantages:
- Scalability: BCH’s larger block size allows it to handle more transactions per second than BTC, reducing bottlenecks.
- Lower Fees: BCH typically has lower transaction fees, making it appealing for daily use and small transfers.
- Decentralization: Some proponents argue that by enabling more transactions, BCH adheres closer to the original vision of a peer-to-peer electronic cash system.
Disadvantages:
- Network Security: A smaller hash rate compared to BTC could make BCH more susceptible to security threats like a 51% attack.
- Market Adoption: BCH is not as widely accepted as BTC, both for payment and investment purposes.
- Brand Recognition: Bitcoin, as the first cryptocurrency, enjoys superior brand recognition and trust among the general public.
All things considered, the cryptocurrency market is volatile and unpredictable, which also affects Bitcoin Cash price action. As usual, BCH 2024’s results will highly depend on fundamental aspects that influence supply and demand. Investors must always do their own research and draw their own conclusions when investing in crypto.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Source: https://finbold.com/chatgpt-predicts-bitcoin-cash-price-for-the-start-of-2024/