We use many tools to trade in crypto markets, and a tool that can make consistent predictions about the future is the dream of every investor, big or small. Imagine having a tool that can predict Bitcoin's price a week from now or show how much Ethereum will lose in value over the next three days: just thinking about it is exciting, isn't it? So, can we use artificial intelligence, the greatest technological advancement of recent years, for this purpose?
In other words, can artificial intelligence show us what will happen in the crypto markets? Here, we will try to answer this question. If you want to relax and have some fun while making market predictions, you can check out the gaming bonuses offered at Roulette77. You can also find strategies to use in the games where you can claim these bonuses at Roulette77 platform.
How Artificial Intelligence Can Predict Crypto Price Movements
Actually, AI behaves no differently than a human. In order to make price predictions, a human trader looks at economic reports, examines historical data, analyzes market trends and places buy/sell orders based on their conclusions. AI does the same, but much faster and more consistently. If you ask an AI to make a price prediction for Bitcoin, for example:
It will first analyze historical data and try to identify patterns for changes in Bitcoin prices.
It will create a model using these patterns.
Using this model, it will try to predict short and long-term price changes.
While there are already bots that can do similar things, AI will get better and better at it by continuing to train itself. That's the biggest difference from other tools: this technology keeps training itself with data and analyzes the results to learn how to get better. However, in any case, it will use datasets based on past results for training, as it needs to identify more patterns to learn from and refine its model using them.
A real-world example: ChatGPT vs Bitcoin
A study conducted in April 2025 by Western Galilee Academic College members Gil Cohen and Avishay Aiche investigated how accurately ChatGPT could predict Bitcoin's price changes between 2018 and 2024. ChatGPT was given datasets to use and asked to make a prediction using them, trading with a virtual budget of 10,000 USD. The results of these trades were as follows:
| YEAR | ANNUAL RETURN |
|---|---|
| 2018 | -11.24% |
| 2019 | +85.52% |
| 2020 | +251.54% |
| 2021 | +156.82% |
| 2022 | -35.05% |
| 2023 | +80.24% |
At first glance, it doesn't look too bad, but there is one problem: why is the change in return rates so aggressive? A human trader could achieve similar or even better results. AI is supposed to achieve more stable and consistent returns - why hasn't this happened?
The Problem of “Human Emotions”
AI only uses data sets to analyze and train itself and cannot predict market changes caused by human emotions - it cannot incorporate them into the model it builds. For the same reason, during periods of market volatility, it is much more likely to fail: there is no pattern for periods of crisis. As a day trader, it would be very difficult to get consistent and stable price predictions using AI services that everyone can reach, such as ChatGPT. Technically, you can get better results by downloading a model like DeepSeek and training it just for this purpose, but you still won't get 100% accuracy and it will take a very long time and cost a lot of money.
Can AI trading bots be an alternative?
No, the same restriction would apply to them. Moreover, the vast majority of these bots use machine learning algorithms, not AI. Machine learning is a less advanced technology compared to AI and the results you get with it will be less satisfying. Also, if you are a day trader, you have no chance to compete with the more advanced trading bots that hedge funds use.
AI Can Still Be Useful to Crypto Traders
This is not to say that artificial intelligence is useless. On the contrary, if you use it in the right way, you can become a better trader than ever before.
This technology can analyze and summarize massive amounts of data for you much faster than you can.
Using the orders you give, it can keep working 24/7 and make sure you never miss an opportunity.
It can create simulations for different trading strategies and show you which ones are more likely to succeed.
In other words, it cannot replace you, but it can work with you. It will be an excellent tool, especially for automated trade execution and risk management. But if you ask it to predict the price of Bitcoin or any other crypto with 100% consistency, it can't do it. You shouldn't think of AI as a “magic button that will make you money every time you click it”: like any other technology, it's designed to support you and, when used correctly, can significantly increase your productivity.
