The rising popularity of artificial intelligence (AI) has led to the development of innovative tools in the world of cryptocurrency. Chain of Demand, an investment data analytics firm, has introduced a widget that closely examines bitcoin price movements surrounding the time of U.S. interest-rate changes, just ahead of Wednesday’s Federal Reserve rate announcement. The potential applications for this technology are generating excitement amongst crypto enthusiasts.
The creators of Chain of Demand’s dashboard, who have experience in handling complex machine-learning engines with financial institutions and data providers such as Bloomberg, have now turned their attention to AI chatbots. In particular, they show a keen interest in ChatGPT, a popular language-recognition engine. As technology-focused hedge funds usually employ postgraduates with a scientific background to analyze large datasets or to apply natural language processing, the prominence of generative AI platforms like ChatGPT may level the playing field and be ideally suited to the retail-first crypto trading space.
However, there is some skepticism regarding the practicality of these AI-driven tools. Some investors believe that a simple ChatGPT response may not be enough when seeking a deeper understanding of bitcoin price fluctuations around Fed rate announcements. AJ Mak, the CEO of Chain of Demand, addressed these concerns by stating that the firm incorporates its own datasets and signals when analyzing bitcoin price movements.
Mak cited examples of social sentiment indicators surrounding bitcoin and whale transactions exceeding $100,000, to go beyond the typical ChatGPT response. This insight into the factors affecting price movements provides valuable information for investors interested in predicting how cryptocurrencies might fluctuate in conjunction with events like Federal Reserve rate announcements.
The introduction of the Fed rate/bitcoin price pattern modeler by Chain of Demand offers a glimpse into the future of AI-driven investment tools and analytics. Although the Hong Kong-based company’s dashboard is still in beta testing, it is expected to be fully launched in approximately two months. With the potential of AI to transform the cryptocurrency trading landscape, both positive and negative opinions will likely emerge as the technology develops further.
In conclusion, the use of AI and innovative applications like the Chain of Demand widget shows immense promise in the world of cryptocurrency trading. However, it is essential to strike a balance between the enthusiasm for these exciting developments and a healthy dose of skepticism to ensure the growth and application of AI technology are both realistic and sustainable.
Source: Coindesk
