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⚡AI-Powered Fund Predicts Bitcoin to Hit $140K🎯

Croxroad

25 Nov 2024 — 5 min read

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🪟 Bitcoin Could Soar to $140K

Intelligent Alpha, an innovative investment firm, has launched a $30 million fund where investment decisions are made entirely by artificial intelligence (AI). Led by CEO Doug Clinton, the firm uses a trio of AI models—OpenAI's ChatGPT, Google's Gemini, and Anthropic's Claude—to form its investment committee. The firm’s approach is to provide minimal human intervention in the decision-making process, with AI models building portfolios based on massive datasets and investment philosophies of renowned investors like Warren Buffett, Stanley Druckenmiller, and Cathie Wood. Clinton describes the process as letting the AIs "run the show," intervening only to ensure that the portfolios align with the intended investment strategies and that no incorrect picks are made due to AI “hallucinations.”

The firm's AI-driven investment process begins by feeding large amounts of company data into the models, such as revenue history and earnings projections. The AIs then apply their respective investment philosophies to create a portfolio, which is later reviewed by humans to ensure accuracy. Despite occasional disagreements between the AIs, this approach has yielded solid returns, particularly in the short-term, as evidenced by successful calls like a short position on Boeing before the 737 MAX disaster earlier this year. Additionally, the AI has successfully picked stocks like Nvidia, which has surged by 400% since the model initially recommended it. While the process might seem counterintuitive at times, Clinton notes that the AIs are not swayed by emotions or market noise, focusing purely on data and long-term trends.

Recently, Intelligent Alpha has started experimenting with Bitcoin, although the firm has generally stayed away from crypto due to the lack of robust data compared to traditional markets. In its initial foray into Bitcoin, the AI predicted that Bitcoin could rise to $140,000 in a favourable regulatory environment, driven by a potential victory from Donald Trump in the U.S. presidential race. Clinton suggests that as the firm gains more confidence in AI's ability to navigate crypto markets, models like Grok, which are trained with data from platforms like X, might be incorporated into the investment strategy for more targeted cryptocurrency decisions. For now, Intelligent Alpha's main focus remains on traditional equities, using AI’s superior ability to predict macroeconomic trends and sector opportunities, particularly in areas like Chinese stocks, where the AI made a profitable call ahead of a major rally.

🏦 Scott Bessent Nominated for Treasury Secretary

President-elect Donald Trump has nominated Scott Bessent, a hedge fund manager and Bitcoin advocate, as his choice for Treasury Secretary. Bessent, who is known for his work at Soros Fund Management and as the founder of Key Square Capital, has long been an outspoken supporter of Bitcoin and digital assets. If confirmed, Bessent is expected to play a major role in shaping U.S. economic policy related to cryptocurrencies, including the possibility of establishing a national Bitcoin reserve. His appointment comes as Trump continues to emphasise deregulation, tax cuts, and policies aimed at strengthening the U.S. economy.

Bessent’s nomination signals a potential shift in U.S. digital asset policy. As a staunch advocate for Bitcoin, Bessent believes that the crypto economy is here to stay and that it aligns with traditional capitalist values by providing opportunities for younger generations to engage in financial markets. His support for Bitcoin could lead to greater integration of digital currencies into mainstream finance, as well as more favourable regulations for crypto businesses and investors. The idea of a national Bitcoin stockpile, which Trump mentioned at the Bitcoin 2024 Conference, could also gain traction under Bessent’s leadership at the Treasury Department.

This move is part of a broader trend within Trump’s administration to embrace cryptocurrency. Earlier this week, Trump nominated Howard Lutnick, a known supporter of Bitcoin and stablecoins, as Commerce Secretary. With these appointments, the Trump administration appears to be positioning itself as a champion of the digital asset space, which could have significant implications for both U.S. monetary policy and the global cryptocurrency landscape. If confirmed, Bessent's leadership at the Treasury will likely shape the future of Bitcoin and other digital assets in the U.S., paving the way for more innovation and regulatory clarity in the space.

🥇 Bitcoin’s First Block Rewards

In the early days of Bitcoin, the rewards for mining blocks were highly centralised. For example, the first block reward of 50 BTC was claimed by a miner who was part of a small group of early adopters. These early miners had a disproportionate influence over the network’s security and growth, raising questions about Bitcoin’s decentralisation at that time.

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