The post ChatGPT-4o predicts Bitcoin’s price if a recession hits in H2 2024 appeared on BitcoinEthereumNews.com.

Speculation about a potential U.S. recession in 2024 has been rampant, with several indicators pointing to this possibility.  In such a scenario, various financial assets, including Bitcoin (BTC), will likely be affected, considering the asset has shown susceptibility to events in traditional finance. Notably, Bitcoin has yet to be tested in a recessionary environment, so its performance will be closely watched. Therefore, Finbold consulted OpenAI’s latest artificial intelligence (AI) tool, ChatGPT-4o, for insights on how Bitcoin might trade during a recession. Factors affecting Bitcoin in a recession  The AI tool highlighted several factors that could impact Bitcoin’s price. ChatGPT-4o noted that some have historically perceived Bitcoin as “digital gold” or a safe-haven asset during economic uncertainty. If this perception persists, demand for Bitcoin could increase during a recession, driving its price up. However, during extreme financial stress, the AI platform noted that investors might prefer liquidating assets, including Bitcoin, to cover losses or secure cash, potentially driving its price down. Central banks might also implement quantitative easing or lower interest rates to counteract a recession, leading to higher liquidity in the market. This could boost Bitcoin’s price as more money enters the financial system. Bitcoin might attract investors seeking an inflation hedge if inflation is high, further pushing its price up. The regulatory environment will also play a crucial role. Positive regulatory developments could enhance Bitcoin’s appeal as an investment, increasing its price, while negative regulatory actions could suppress its price, even amid a recession. Increased institutional adoption could also support Bitcoin’s price during economic downturns. Lastly, market dynamics, such as Bitcoin’s supply and overall cryptocurrency market trends, will influence its price. Bitcoin price prediction  Based on the identified factors, ChatGPT-4o outlined three potential scenarios for Bitcoin’s price in the second half of 2024 in the event of a recession.…

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Filed under: News - @ June 8, 2024 11:24 am