Bitcoin Price Prediction: Why AI Platform Founder Sees BTC Topping ETH
Artificial intelligence can be used in many ways, from the absurd to the sublime. The most valuable use case is helping people to make smart, profitable investments.
Giuseppe Sette is the cofounder and president at Toggle AI. He said that some users beat stock-market returns up to 18% using the technology. Now, it can be applied to crypto investing.
Sette, who has a background in quant trading at hedge fund, stated that the platform provides an ‘augmented investment experience’ that guides users through markets.
Toggle AI is growing rapidly. It claims it has 70 institutional clients, totaling $165 billion, and 70,000 retail investors who pay $10 per month. It has been endorsed by legendary investor Stanley Druckenmiller who gave Toggle’s CEO Jan Szilagyi his start in 2005.
Machine learning is used to feed huge amounts of data into computer algorithms. The algorithms identify patterns, links, and correlations in the data and indicate the most likely price movements for stocks and cryptos.
Sette stated that they try to concentrate on data that is not widely available or known. “So, we try to bring to the surface fundamental stock data and macroeconomic data. We also try to use AI not as an opaque box, but to offer a ‘glassbox’ experience to the user.
Sette stated that success is dependent on the quality and quantity of data. Toggle AI has access to a lot of useful data.
Sette stated that machine learning attempts to identify the most important information about stocks and cryptos. We do this using data from stock analysts, macroeconomics and geopolitical tensions.
“On the news side we have modules which read all the news and return to you with a selection. This will tell you: “This one is most likely move the market, so we think you should be reading this.” This is not a sentiment analysis which is very common. It’s a market-moving analysis that makes sure you are aware of specific information that may be relevant to your securities.
Cryptos are not like stocks and have no shareholder meetings or earnings statements. However, they have the blockchain. The public ledger allows anyone to see every movement of coins between addresses. This information is useful for data-hungry algorithms like Toggle AI.
You can also input historical price data for each cryptocurrency to the platform. In bitcoin’s case, you will find mining data, such as the new coin supply or the hash rate, too.
Sette stated that the platform was designed to be truly cross-asset so it can cover all traditional financial markets. This means that it can be expanded to include new asset classes such as crypto.
He said, “We truly live, breathe and eat data all the day long. Therefore, it was really interesting and pleasurable for us to dig deeply into crypto space.”
Toggle AI’s crypto prediction is that bitcoin will outperform Ethereum by 33% in the next three-months.
“Our AI uses historical data points in order to imitate the thinking of discretionary investors. Sette said that bitcoin and ethereum are two of the most important pillars in the crypto space. He explained that the maximum ratio is the one beyond which one must retrace and return to the other.
He said that Bitcoin is at its lowest point versus ethereum and that that’s what the system notices first. It is a compelling risk to return. That’s the first step. The Ethereum outperformance in November last year raised its percentage to bitcoin up to 0.86, a record high for the past three years. According to TradingView, the ratio was 0.7 Wednesday.
Sette stated that other data was emerging. He said that the Puell Multiple is a simple, but powerful, valuation method that attempts to determine how much bitcoin supply is available in relation to historical levels.
Toggle AI’s platform is not a perfect investment option. Crypto can be volatile and investors need to do their research from many sources.
Slowly, but surely, you can see a picture of bitcoin being cheap today. Sette stated that if the right catalysts are available – perhaps an easing in the Ukraine crisis or an easing inflation – bitcoin could rally quite meaningfully.