The ChatGPT Effect on Crypto

A captivating revelation from the Blockchain Research Lab in Hamburg, Germany highlights the unforeseen impact of OpenAI’s ChatGPT on cryptocurrency, particularly those linked to artificial intelligence. Launched in November 2022, this digital wonderastounded millions, surpassing 1 million users within just five days. By January 2023, it had ballooned to an eye-popping 100 million monthly users. Speculations suggest an astounding potential reach nearing 1 billion by June 2023!

Price Highs Amid Market Lows

Despite an overall bearish trend in the cryptocurrency market, the arrival of ChatGPT was like a breath of fresh air for AI-related crypto assets. The research found a cornucopia of price increases: a modest rise of 10.7% over a month soared to 35.5% after two months. And hold on, the ceiling of these changes was even juicier—15.6% for one month and 41.3% over two months! Who knew a chatbot could spark a crypto revolution?

• 10.7% increase (1 month)
• 35.5% increase (2 months)
• 15.6% (ceiling for 1 month)
• 41.3% (ceiling for 2 months)

The Power of Hype and Public Sentiment

The researchers teased out intriguing connections between media buzz, marketing hype, and public perception. It seems investors started to believe AI-related crypto had newfound worth and potential. This newfound allure led institutional investors to direct funds towards big-tech AI projects, prompting retail investors to flock to crypto, too—as if a new craze had surfaced at a market fair.

Educational Tools or Investor Playground?

The researchers even dropped a fascinating theory on how ChatGPT might be influencing investor education. By demystifying convoluted concepts, the AI tool is potentially empowering retail investors to make smarter, informed choices in the cryptosphere. Just think of it, getting investment advice from a chatbot sounds like a futuristic board game we never knew we wanted!

A Gloomy Outlook for Non-AI Crypto

While AI-related cryptocurrencies were riding a lucrative wave, those unrelated to AI were stuck in a holding pattern, resembling a hamster in a wheel—lots of effort but not much movement. The downturn began in Q2 2022 and it shows no signs of recovery, with enthusiasm waning as Google searches for “crypto” nosedive to levels last seen in 2020. Who knew 2023 would feel like the long-lost cousin of a bad high school reunion?