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Can AI Predict Crypto Prices? Experts Weigh In

2 mins
Updated by Geraint Price
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In Brief

  • Experts address whether AI tools can predict prices of investment instruments.
  • The chairman of Dimensional Fund Advisor believes that the market is the best AI.
  • Similarly, a renowned trader and software developer was not satisfied with the backtesting results of AI indicators.
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As artificial intelligence (AI) rises in popularity, the big question among the community is if it can be helpful in generating price predictions.

Chatbots such as ChatGPT and Bard are taking the market by storm, so the trading community speculates on whether AI can predict future prices.

Aggregate Intelligence

David Booth, the founder, and chairman of Dimensional Fund Advisor, shared his input on using AI to track stocks. In a Financial Times article, Booth shared that the market is the best AI. He wrote:

“I think my AI is better than all the other ones out there. My AI is the market.”

He calls the market “Aggregate Intelligence,” which also includes artificial intelligence and betters it.

This is because the price of a particular trading instrument, such as stock or crypto, is based on demand and supply. The current price represents various information, data, sentiments, and even the bets placed by various trading algorithms.

Booth claims:

“Large language models, the types of AI that power tools such as ChatGPT, are intended to understand and generate text that seems as if it was made by humans, not predict future outcomes.”

Last month, BeInCrypto reported the limitations of ChatGPT in making Bitcoin (BTC) price predictions.

Results of AI Trading Not Satisfactory: Software Developer

Neel Kukreti, a renowned trader and software developer, believes AI can help research faster. But, at the current stage, he is not satisfied with the backtesting results using AI indicators.

He told BeInCrypto:

“I don’t trust AI at this stage to make trading decisions. I have tried to develop indicators using AI, but on backtesting, results were not satisfactory.”

BeInCrypto recently asked Bard to make Shiba Inu (SHIB) price prediction for the end of 2023. Although it predicted SHIB to hit $0.000011 by the end of 2023, the data was drawn from the price prediction aggregator CoinCodex.

However, Bard also shared its reasoning on why it is highly unlikely for SHIB to hit $1. It listed factors such as increasing demand and a burn in SHIB supply that could lead to the meme coin achieving the $1 milestone.

Got something to say about AI price predictions or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or Twitter.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

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Harsh Notariya
Harsh Notariya is a journalist at BeInCrypto, who writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created educational reports on...