In the wake of one of the biggest global IT outages, the cryptocurrency market is poised for significant growth, according to predictions from ChatGPT-4o, an advanced artificial intelligence (AI) language model.
The unprecedented disruption, caused by a software update from CrowdStrike in the Microsoft operational system, could have sparked renewed interest in decentralized financial systems. CrowdStrike (NASDAQ: CRWD) stock plummeted almost 15% in pre-market trading on July 19, as reported by Finbold.
Global IT chaos could spark cryptocurrency surge
The world witnessed what experts are calling the “biggest IT outage ever” on July 19, 2024. Major banks, media outlets, airports, and airlines across the globe experienced severe disruptions. Additionally, rail services in parts of the US and UK were affected, while payment systems in Australia and the UK faced significant challenges.
Picks for you
Furthermore, the outage impacted 911 services in several US states, including Alaska, Arizona, Indiana, Minnesota, New Hampshire, and Ohio. The London Stock Exchange also reported service disruptions, and Sky News temporarily went off the air.
However, CrowdStrike’s CEO has assured the public that the issue was not due to a cyberattack. He stated, “The issue has been identified, isolated, and a fix has been deployed.”
Cryptocurrency market cap predicted to soar
In light of these events, ChatGPT-4o forecasts a substantial increase in the total cryptocurrency market capitalization. Currently, TradingView‘s CRYPTOCAP:TOTAL index stands at $2.294 trillion, slightly above the 50-day exponential moving average.
The AI model suggests that the market cap could reach between $2.5 and $2.7 trillion in the coming days or weeks. This prediction is based on the assumption that investors will seek more robust and decentralized financial systems in response to the global IT outage.
Bitcoin and Ethereum set to benefit
ChatGPT-4o also provided price predictions for the two largest cryptocurrencies by market cap: Bitcoin (BTC) and Ethereum (ETH). Currently, BTC is trading at $64,905, with a market dominance of 55.1%.
The AI model predicts that Bitcoin could test the $68,000 to $72,000 range in the short term. This projection is based on Bitcoin’s perceived value as “digital gold” during times of uncertainty.
Meanwhile, Ethereum, currently priced at $3,408 with a market dominance of 17.85%, is expected to benefit from increased attention to decentralized systems. ChatGPT-4o suggests that ETH could potentially reach the $3,700 to $4,000 range in the near future.
Decentralization as a solution
The recent global IT outage has highlighted the vulnerabilities of centralized systems. Consequently, cryptocurrencies, being decentralized by nature, could attract significant investor attention as a potential solution to these problems.
ChatGPT-4o emphasizes that the decentralized nature of cryptocurrencies could provide a more resilient alternative to traditional financial systems during such large-scale disruptions. This factor is expected to drive increased adoption and investment in the coming weeks.
While the predictions paint an optimistic picture of the cryptocurrency market, ChatGPT-4o advises investors to remain cautious. The AI model stresses the importance of staying informed about both global events and specific market movements to make well-informed investment decisions.
As the world continues to grapple with the aftermath of the global IT outage, all eyes will be on the cryptocurrency market to see if these predictions come to fruition.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
