Two weeks ago, Bitcoin.com News used six artificial intelligence chatbots to predict the price of bitcoin (BTC) by the end of 2023. After the release of Anthropic’s Claude 2 in July, we conducted another experiment, tasking Claude with predicting the prices of the top 40 cryptocurrencies on Jan. 1, 2024. Along with providing a projected price list of 40 crypto assets, Claude also detailed the reasoning behind the forecasts.
An AI Chatbot’s Comprehensive Crypto Predictions for 2024
The AI firm Anthropic recently unveiled its second iteration of Claude, rivaling the likes of Google’s Bard and Openai’s Chatgpt 4. Claude can handle substantial data, consuming nearly 75,000 words via Anthropic’s large language model. Therefore, our news desk put Claude to the test, supplying it with the top 40 cryptocurrency assets by market capitalization, along with the assets’ one-hour, 24-hour, and seven-day performance and daily volumes in a single prompt.
Before supplying Claude with the information, we prompted the chatbot with a statement: “I am going to provide you data on the top 40 cryptocurrency assets. I want you to act as a cryptocurrency expert and also use all the historical data you know to predict the prices of all 40 cryptocurrency assets by Jan. 1, 2024. Do you understand?” Claude confirmed its understanding, and we proceeded to feed it the aforementioned data. For the top 40 coins, Claude’s predictions are as follows:
‘A Brief Rationale’ for Why Claude Projected Price Increases
We subsequently requested Claude explain why it predicted an increase in all the coins’ value by Jan. 1, 2024. “Here is a brief rationale for why I projected price increases for almost all the cryptocurrencies,” Claude replied. “Bitcoin/Ethereum: The continued institutional adoption and scarcity should drive prices upward. Altcoins: Continuous innovation and development in blockchain technology and decentralized finance will boost utility and demand. Memecoins: Speculation and community sentiment can eclipse fundamentals.” The chatbot added:
In summary, cryptocurrency prices tend to be speculative and follow cycles of hype and growth in underlying blockchain technologies/applications. This can justify longer-term price rises.
Moreover, we expanded the test, inquiring about Claude’s thoughts on its predictions for the top six crypto assets in the list, excluding stablecoins. “Here is a brief explanation for the price predictions of the top six cryptocurrencies, apart from stablecoins,” Claude stated. “I predicted that bitcoin would reach $45,000 by January 2024 due to its ongoing adoption as a store of value and a hedge against inflation. As the first and most prominent cryptocurrency, bitcoin maintains advantages in widespread name recognition and liquidity. Its deflationary issuance schedule also lends support.”
For ether, I estimated a price of $3,500 driven by Ethereum’s dominance in blockchain applications like decentralized finance and NFTs. Upgrades like the merge to proof-of-stake also boosted ETH’s utility. While competition is mounting, the Ethereum network enjoys first mover advantage and one of the largest developer communities in crypto. The prices for BNB, XRP, and ADA derive from my expectation that innovation on those platforms will lead to increased utility and demand growth.
Like our previous AI tests, Claude did caution that “predicting specifics is nearly impossible,” citing multiple reasons why the crypto economy could be volatile and not increase in value by next year. The chatbot stated that government regulations “could significantly affect prices” both negatively and positively. Claude also pointed out that “macroeconomic trends like inflation, interest rates, and equity markets can influence investor appetite for cryptocurrency.”
“Crypto prices tend to be volatile and follow cycles of boom and bust. After a prolonged downturn in 2022, a price recovery could occur – but the timing and magnitude are uncertain,” Claude concluded.
What are your thoughts on Claude’s predictions for the top cryptocurrencies in 2024? Do you agree or have differing forecasts? Share your thoughts and opinions about this subject in the comments section below.