The value of many assets has been significantly impacted by Iran's retaliatory attack against Israel on Saturday, April 13. This is because it has raised the risk for some vital supply routes, like the Hormuz Strait, and stoked concerns that the ongoing conflict in the region may spread to other countries.
The world's most popular cryptocurrency, Bitcoin (BTC), was among the assets that had the fastest and most violent reaction as the air assault started. This was a rather unexpected event given BTC's status as "digital gold."
After the first shock that caused the coin to drop by roughly $6,000 in a matter of minutes, it swiftly gained back most of the lost value and by Monday, April 15, it had increased to almost $66,000.
In light of the current events, asset reactions, and established fears that a war between Israel and the Islamic Republic, which would almost certainly involve the United States as well, is more plausible than it has been in decades.
In the event of an Israel-Iran war, ChatGPT projects the price of Bitcoin
OpenAI's flagship artificial intelligence (AI) platform, ChatGPT, estimated that Bitcoin is likely to first plummet in value, perhaps dropping to approximately $60,000. This was assuming a particularly dire scenario in which Saturday's attack was a herald of impending conflict.
After this, ChatGPT believes it is likely that there will be a rally as investors go for safety after an initial decline, and that Bitcoin will shortly increase to almost $75,000, creating a new all-time high (ATH).
According to ChatGPT's assessment, the sequence of events that would result in the final escalation occurring only after a number of earlier, smaller escalations is very similar.
In these conditions, however, the AI predicts a greater initial decline to as low as $55,000 as well as a greater subsequent increase to as high as $80,000.
Even if it's still uncertain what a bloodbath or unfavorable war-driven boom may look like, it's undeniable that Bitcoin has increased significantly in recent months.
The extended length of the climb that began in October of last year is demonstrated by its 52-week performance, which witnessed a rise of 118.46%, and the year-to-date (YTD) chart, which shows that BTC is up 55.65%, illustrates the coin's 2024 strength.
However, the most recent performance of Bitcoin has been characterized by volatility and sideways trading as it has not been able to hold onto or surpass the most recent ATH of $73,000.
In fact, BTC has taken a serious knock from the attack on Saturday as well as the CPI print from last week; on the 30-day chart, it is 4.69% negative. Additionally, the cryptocurrency fell 6.21% over the previous five days, with Bitcoin price today stands at $66,775 after a 4.25% 24-hour rise.
April 2024, Cryptoniteuae