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The recent downturn in the cryptocurrency market, especially with Bitcoin (BTC) falling below the critical support level of $40,000, has alarmed some investors. In an environment where investors largely did not react to the biggest cryptocurrency’s potential rise, especially related to a spot exchange-traded fund (ETF), investors are now in search of a trigger that could lead to an upswing. We turned to Google’s artificial intelligence, Google Bard, in search of predictions regarding Bitcoin’s potential price trajectory. Google Bard’s analysis points to various possibilities, together with the factors of decline and rise that could influence Bitcoin’s next move.
Google Bard Predicts a Frightening Drop Scenario for Bitcoin
According to Google Bard, factors such as the ongoing narrative of high inflation, a high-interest-rate environment, and increasing regulations are leading causes of the downturn in Bitcoin. The AI also considers the possibility that Bitcoin could be affected if investors’ interest shifts to the altcoin king, Ethereum (ETH). In this context, Google Bard indicated that the combination of all these factors could potentially push Bitcoin down to $35,000 or even lower.
However, Google Bard also listed potential catalysts for a bullish scenario. The block reward halving in April, which will reduce the new BTC supply, followed by steady or increasing demand, could trigger a significant recovery. Additionally, increasing institutional adoption and a positive news flow could potentially drive Bitcoin to its all-time high of around $69,000.
On the other hand, Google Bard emphasized the potential impact of bulls and bears struggling to control Bitcoin’s price. The AI suggested that in this scenario, the price could remain neutral, ranging between $35,000 and $45,000 for a large part of the year.
At this point, it’s important to note that a large portion of market participants have shifted towards expecting a continuation of the downturn after Bitcoin lost its $40,000 support. This bearish outlook is accompanied by reports showing that whales have accelerated their dumping operations on exchanges over the last two weeks, offloading approximately $3 billion worth of BTC. Particularly in the US, the inability of approved spot Bitcoin ETFs to act as significant catalysts in the short term has shifted attention to the block reward halving, historically considered an important catalyst for a rise, with its effects expected to be seen by April.
Current State of Bitcoin Prices
Bitcoin, the largest cryptocurrency, is trading below the $40,000 support level, with a drop exceeding 4.5% within the day. Current data at the time of writing this article shows BTC trading just below $39,000, at $38,950.
In the short term, the focus of bulls and bears will be the struggle to bring Bitcoin close to or away from the $40,000 level. Due to the inevitable sharp price movements during this struggle, investors, especially those using leverage, need to be very cautious.
