We have seen Bitcoin undergo numerous ups and downs in its history, but only a few times have we seen a rally in price proclaimed as a full-on bull market. The last bull run occurred back in late 2021 when the price of Bitcoin skyrocketed to its ATH of $69,000.

However, what followed that run was a heavy price decline that saw the cryptocurrency dump down to below $20,000 amid various collapses in the industry, including the rapidly growing global inflation and war happening in Europe.

Since then, the price of bitcoin has recovered a lot of ground having traded below $16,000 in that dump, and there has been constant speculation by the community as to whether a new bull market has already started or is just around the corner. In this article, we will be looking at what ChatGPT – the AI chatbot thinks about it.

Adoption

Although ChatGPT has sometimes been in the wrong with regard to information about Bitcoin, such as its all-time high price, however, the chatbot has provided us with certain information that interests us on what factors could possibly propel the next bull-run. The first highlighted option by the chatbot is global adoption, and this comes in two parts – institutional and market– but for the purpose of this article, we have combined them into one.

Considering market adoption, ChatGPT believes that the price of cryptocurrencies will resume its upwards movement once more businesses begin to accept it as a means of payment. As this will “create positive sentiment and increase demand.”

“Factors such as the integration of Bitcoin payment options by major companies or the launch of regulated Bitcoin investment vehicles can contribute to a bull market.”

Adoption by Institutions could also help push the price of BTC up. It is no longer news that various firms, such as MicroStrategy, Tesla, MassMutual, and BlackRock, have either purchased portions of the primary cryptocurrency or engaged with it in different ways during the last bull run. If this scenario repeats, another bull run might be on the cards.

Technological Developments

According to the AI chatbot, there are certain technological developments that can trigger another run-up. An example of this is when the Bitcoin network experienced enhanced adoption and engagement after undergoing the Tarpoot upgrade, which allowed NFTs to be created on top of it.

Miners were beneficiaries of this particularly because of the increase in the number of transactions and the higher transactional fees. However, there are other possibilities and factors as well.

“Significant advancements in Bitcoin’s underlying technology or improvements in scalability, security, or privacy features can generate excitement and attract more users and investors.”

Regulatory Clarity

In the past few years, several countries have made attempts towards regulating the cryptocurrency industry, but the industry remains largely unsupervised. We have seen some of the largest nations, including the US and China, either having to officially ban the asset class or simply failing to provide proper regulations that can help it thrive while protecting investors at the same time.

Should such agitations towards trying to regulate or restrict the industry change, ChatGPT believes that the price of the primary cryptocurrency will begin to head north once again.

“Clear and favorable regulations can provide a more stable environment for cryptocurrencies, increasing investor confidence. Positive regulatory developments, such as the recognition of Bitcoin as a legal form of payment or the establishment of supportive frameworks for cryptocurrency businesses, can encourage market growth.”

In the past several months, the landscape in the US has been particularly rough for the crypto industry as the SEC has gone after the likes of Binance, Coinbase, Kraken, and others despite not providing clear guidelines on which crypto assets are securities.

Economic and Geopolitical Factors

As already mentioned, the recent wars that broke out in Europe have caused torment for investors in various sectors, including crypto. In addition, the rising inflation and the desperate attempts by the central banks to fight it have resulted in outflows from risky assets, such as Bitcoin.

On a larger scale, ChatGPT believes that the dreadful economic situation, political turmoil, or devaluation of currency, could make people turn toward Bitcoin. The demand for the primary cryptocurrency is likely to increase as people will be interested in “decentralized and non-government-controlled assets like Bitcoin.”

Similar developments have occurred in countries like Turkey and Argentina, which have struggled with double- and even triple-digit inflation rates for a while. And as such, ChatGPT has cited the words of legendary legacy investor Paul Tudor Jones III,

“In times of economic uncertainty, some investors may view Bitcoin as a hedge against traditional financial systems, potentially driving up its price.”

Bitcoin Halving

Lastly, ChatGPT brought up the halving events of Bitcoin. Since the inception of Bitcoin in 2009 the halving was incorporated into the network, the halving occurs every 210,000 blocks (approximately four years) and its aim is to reduce the block rewards, which will decrease the speed at which a new BTC is being created.

The last three halvings were accompanied by massive bull runs, and ChatGPT has hinted that the next halving – which is expected to take place in April next year – will most likely lead to the same outcome.

“Historically, halving events have coincided with bull markets as reduced supply and a potential increase in demand have had a positive effect on Bitcoin’s price.”

Featured Image Source: Cryptopolitan