ChatGPT4o Determines Bitcoin Price as Mt Gox Prepares to Sell 9 Billion Worth of BTC
Bitcoin is currently facing a challenging time as negative sentiments are on the rise, with expectations of a potential increase in capital flow. The market is bracing for a significant dump of Bitcoin valued at about $9 billion, as Mt. Gox, the now-defunct crypto exchange, plans to begin repayments in July 2024.
These repayments come after a decade-long ordeal for creditors since Mt. Gox shut down on February 24, 2014, following a hack. At its peak, the exchange handled more than 70% of all Bitcoin transactions globally before abruptly ceasing operations, causing substantial financial losses for many investors. The repayment process will also involve around $50.8 million in Bitcoin Cash.
The impact of Mt. Gox on Bitcoin’s price is expected to be significant, given the offloading of such a substantial amount in the market amid existing bearish pressures. According to Bloomberg senior ETF analyst Eric Balchunas, this repayment is equivalent to more than half of all exchange-traded fund inflows being negated in one go.
In light of this impending event, predictions suggest downward pressure on Bitcoin prices in the near future. OpenAI’s latest AI tool, ChatGPT-4o, forecasts potential key support levels to watch, including psychological and historical support zones at $58,000 to $60,000, strong support at $55,000, and a major psychological barrier at $50,000. Breaking below $50,000 could lead to further declines, potentially pushing prices towards $45,000.
Despite short-term bearish pressures, ChatGPT-4o maintains a positive long-term outlook for Bitcoin, citing factors such as increasing institutional adoption, decreasing new supply due to halving events, and growing acceptance of Bitcoin as a store of value. Investors are advised to monitor key support levels, look for signs of price stabilization or reversal, and track indicators of reduced fear or increased investor confidence to capitalize on potential dips.
Recent price movements suggest that Bitcoin may lose the $60,000 support level in the short term unless a significant market event occurs. As of now, Bitcoin is trading at $61,120, having dropped nearly 5% in the past 24 hours. Further losses may be expected if Bitcoin fails to hold the $60,000 support level.
It is important to note that the information provided should not be considered as investment advice, as investing in cryptocurrencies is speculative and carries risks to your capital.
