Advertisement
CNA Weekly Roundup 23.02.24
Sam Altman’s $7 Trillion ask could provide capital to AI crypto opportunities
Sam Altman is seeking a whopping $7 trillion for GPU chip production, primarily to support the burgeoning demand for generative artificial intelligence (GenAI). A potential injection of this size to support AI innovation has the potential to create a serious super-bubble.
GPUs are required to train AI machines and while big tech companies like AWS and Microsoft have a monopoly over the market they still can’t meet the rising demand. Compute requirements for AI learning have grown x10 every year since 2010 whereas computing power has only grown x2 during the periods
While Sam is trying to close the gap, the mismatch between supply and demand gives rise to decentralised crypto projects to assist in adding idle household GPUs to the network and reward the contributors with tokens.
In his other works Sam Altman is still scanning eyeballs with his Worldcoin project which has just surged a whopping 40% behind this exuberant move was the launch of a text to video AI app Sora. Sam is most definitely ticking off all the boxes as he takes the lead in the AI front.
The Dark Side of the ETF Narrative
The buzz is back in the crypto world with the talk of spot Bitcoin ETFs and the imminent approval of Ethereum ETFs, likely hitting the market by May. This news isn’t just shaking up crypto—it’s reshaping the entire ETF landscape.
Sure, the excitement over ETFs bringing in a flood of institutional money is palpable, but let’s pause for a moment. Could this rush for institutional capital potentially jeopardise Bitcoin’s long-term success?
Renowned analyst Jim Bianco has raised concerns regarding the introduction of Spot Bitcoin ETFs, expressing scepticism about their compatibility with the decentralised nature of Bitcoin. According to Bianco, centralising a purportedly decentralised asset like BTC through ETFs presents inherent contradictions.
Consider this: With big players like Blackrock swooping in to snatch up Bitcoin, it’s starting to look more like a Wall Street trading game than a decentralised currency. We’re witnessing the centralisation of an asset meant to be decentralised.
While this might initially boost Bitcoin’s price, it raises concerns about its independence and integrity over time. This could lead to a worrisome centralisation trend in a world built on decentralisation, where a few whales hold significant sway over the industry’s direction.
Breaking Down The Charts
Our recent position on Bitcoin, established last week, has provided a notable gain of 16.5%. This gain comes as we observe the market reaching a local peak, a level we previously encountered and rejected back on September 8th, 2021.
Notably, this particular level has remained untested since the beginning of 2022, and our current retesting is occurring near all-time highs.
An interesting observation is the potential retest of previous range highs around $49,000, which could serve as a crucial level in our trajectory moving forward.
This underscores the importance of retracement in our market movements; often, stepping back is essential for propelling us forward. The absence of retracement in price action can be concerning, as it may indicate unsustainable acceleration, potentially leading to volatile market behaviour.
Based on historical data and recurring tendencies in Bitcoin cycles, speculating that the bull market peak after the upcoming April 2024 halving could potentially occur in September or October 2025.
This projection aligns with the approximately 500-day timeframe observed between halving events and subsequent peak 4 year market cycles.
However, predicting the precise timing of market peaks is challenging due to emotional influences, market sentiment, and the potential for an accelerated cycle.
While historical patterns provide valuable insights into market behaviour, cryptocurrency markets are notoriously unpredictable and subject to rapid fluctuations. Factors such as regulatory developments, technological advancements, macroeconomic trends, and investor sentiment can all influence the trajectory of Bitcoin’s price movements.
Additionally, the growing mainstream adoption of cryptocurrencies and the emergence of new market participants add layers of complexity to price forecasting.
Therefore, while historical data and recurring tendencies offer valuable reference points for understanding market dynamics, investors should approach predictions with caution and consider a diverse range of factors when making investment decisions in the volatile cryptocurrency space.
Author
Investified
Investified is an online education, research and community app designed to take everyday time-poor Australians from confused to confident with their crypto investing.
