TL;DR
- Bitcoin prices have started to recover after falling recently, raising hopes for a possible rally in May.
- Favorable regulation and increased institutional adoption could fuel a significant increase in BTC price (per ChatGPT).
What is the probability that BTC will rise in May?
Despite a strong start to the year, surging to all-time highs in March, Bitcoin's progress stalled in April. Major cryptocurrencies had a poor start to May, dropping to $56,800, the lowest level in nearly two months.
The past few days have been a little more optimistic, with BTC regaining lost ground and briefly surging towards the $60,000 level. Therefore, we decided to ask ChatGPT if the asset could experience a more significant rise and tap a new ATH during this month.
While the possibility of popular AI-powered chatbots was not ruled out, a number of factors necessary for such a price increase were outlined.
Positive regulatory news mentioned as the most contributing factor. ChatGPT estimated that it could be reinstated once additional ETFs are approved. Another regulatory development that could have a positive impact on the overall crypto market is Ripple's decisive victory in its legal battle against the SEC.
Recall that the trial between the two companies began at the end of April, and the company had previously secured three partial victories.
of second most important element Named by ChatGPT is an institutional adoption. “Increased adoption by large institutions such as investment funds, banks, and corporations could lead to significant problems. inflow of capital Convert it to Bitcoin,” the chatbot claimed.
Also added technological advances, market sentiment, macroeconomic conditions and supply trends Go to list of required elements.
Signs of a sharp rise in BTC
Several indicators suggest that Bitcoin's correction may not last long. One example is the MVRV (market value to realized value) metric, which has been declining since early April.
A score above 3.5 suggests that BTC price is near a peak, while a result below 1 warns of a bottom. MVRV ratio depressed On May 2nd, it rose to 1.87, flashing a buy signal for this asset.
Another sign is the BTC exchange net flowwhich has been primarily negative over the past two weeks. shift The move from centralized platforms to self-custody is seen as bullish as it reduces immediate selling pressure.
probably, largely clear Factors that suggest a Bitcoin bull market is just around the corner: half-life it happened last month. This event rewards miners for validating blocks on the blockchain. Slashed Historically, half of Selection subjects The resurgence of the entire crypto sector. To learn more, check out our exclusive video below.
