Is the Bitcoin ETF effect already priced in? ChatGPT and Bard are sure: there is still room for improvement.

Is the Bitcoin ETF effect already priced in? ChatGPT and Bard are sure: there is still room for improvement.

According to a report from bitcoin-2go.de, there are rumors circulating in the crypto market that the first approval of a Bitcoin Spot ETF in the USA is imminent. This development is considered one of the most important price drivers for Bitcoin. However, the question arises as to whether the Bitcoin ETF effect has already been fully priced into the current price or whether the market still has room for improvement.

Market analyst Arthur Hayes claims that the Bitcoin Spot ETF plays no role in Bitcoin's recent price gains. Instead, the growing conflict situation worldwide is the most important factor for rising prices. Bitcoin is currently trading at $34,140, ​​after a rapid price increase of around $30,000 in the last few days.

To assess the impact of a potential approval of a Bitcoin Spot ETF on the market, Bitcoin2Go surveyed artificial intelligences ChatGPT and Bard from OpenAI and Google, respectively. Both chatbots provided similar answers and predict that Bitcoin's market cap will increase if a Bitcoin Spot ETF is approved by the SEC. However, the price may not rise as much as one would think, as much of the rumors and anticipation may have already been priced in. It is the “Buy the Rumor, Sell the News” phenomenon, in which the market reacts positively in advance of good news and limits the potential for further price increases.

Bard, Google's artificial intelligence, assesses the situation similarly. She also assumes that the price will continue to rise, but that large parts of the bullish sentiment have already been priced in. Bard predicts growth of around 10 percent and a Bitcoin market capitalization of $732.6 billion if a Bitcoin Spot ETF is approved. This could cause the Bitcoin price to rise to around $38,600.

Bard's assessment is supported by some analysts' expectations that Bitcoin's market capitalization could double or triple if a Bitcoin Spot ETF were approved.

Overall, it can be said that the potential approval of a Bitcoin Spot ETF in the USA could have a positive impact on the Bitcoin market. Demand for Bitcoin is expected to increase, especially among institutional investors who have been waiting for a regulated investment opportunity. However, the exact amount of the price increase is difficult to predict and depends on how much of the expected positive development has already been priced into the current price.

Source: According to a report from bitcoin-2go.de