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ChatGPT builds a $1,000 crypto portfolio for 2025

The wider cryptocurrency market entered a bull run following the conclusion of the United States presidential election in November. However, the surge hit its first speed bump quite quickly — in mid-December, the Federal Reserve announced that it would put fewer rate cuts in place in 2025 than was originally expected. Bitcoin ( BTC ) saw prices crash from an all-time high (ATH) of roughly $106,000 to just $92,000, and altcoins predictably followed suit. December 20 turned out to be the worst day, with as much as $310 billion exiting the market. However, by press time, the price of Bitcoin had recovered to $96,551. While analysts mostly remain bullish, there is an increasing number of voices that are now predicting a short-term correction . With these new developments in mind, Finbold has consulted OpenAI’s most advanced large language model (LLM) to construct a $1,000 cryptocurrency portfolio for the coming year. Blue-chip cryptocurrencies (70%) A vast majority of GPT’s proposed portfolio is dedicated to blue-chip cryptocurrencies — namely, Bitcoin and Ethereum ( ETH ). With an initial balance of $1,000, the AI model would invest $700 in two flagship digital assets. In the case of Bitcoin, which accounts for 40% of the entire portfolio, ChatGPT cited increasing institutional adoption , widespread global demand, and increasingly recognized utility as a store of value and hedge against inflation as bullish catalysts. ChatGPT’s reasoning for picking BTC. Source: OpenAI On the other hand, 30% of the portfolio was allocated to Ethereum, owing to its already dominant and expanding ecosystem, widespread adoption by enterprises, and robust development community. ChatGPT’s reasoning for picking ETH. Source: OpenAI High-potential altcoins (25%) Surprisingly enough, ChatGPT only allocated a quarter of the portfolio — 25%, to altcoins. Readers should note that a wide variety of cryptocurrency analysts, such as Michaël van de Poppe, predict that altcoins will outperform BTC in 2025. The AI model set a 10% allocation for Solana ( SOL ). An active and rapidly growing developer base, fast and affordable transactions, and a wide variety of use cases were singled out as tailwinds. ChatGPT’s reasoning for picking SOL. Source: OpenAI Up next, Polygon ( MATIC ) accounts for the same proportion of ChatGPT’s portfolio, at 10%. As Ethereum’s go-to scaling solution, Polygon is uniquely positioned to benefit from the rise of one of the cryptocurrency market’s most notable listings and has already secured numerous strategic partnerships with major enterprises. ChatGPT’s reasoning for picking MATIC. Source: OpenAI Finally, Arbitrum ( ARB ) represents 5% of the AI model’s portfolio — OpenAI’s model reflected on the project’s dominant position among Layer 2 networks and continuing expansion in the DeFI space as key drivers for growth in 2025. ChatGPT’s reasoning for picking ARB. Source: OpenAI Stablecoins (5%) Last but not least, ChatGPT suggested that investors should set aside 5% of their portfolio for stablecoins — preferably Tether ( USDT ) or USD coin ( USDC ). Unlike the other assets that were picked, the role of these stablecoins is not to secure returns — rather, this allocation is meant to provide a degree of stability to the portfolio, as well as the option to take advantage of any opportunities that might pop up over the course of 2025. ChatGPT’s reasoning for picking stablecoins. Source: OpenAI As interesting as the AI model’s outputs are — they can certainly provide some degree of insight, investors should remember that the responses given by ChatGPT cannot serve as a suitable substitute for due diligence and personal research. Perhaps more importantly, ChatGPT cannot account for personal circumstances — and while this portfolio does appear to be broadly applicable, readers should always be wary of ‘one size fits all’ solutions when it comes to investing. Featured image via Shutterstock The post ChatGPT builds a $1,000 crypto portfolio for 2025 appeared first on Finbold . Bitcoin.com

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Bitcoin Institutional Adoption Accelerates as ETF Filings Show Investor Appetite

The dominant crypto narrative for 2024 has been institutional adoption. From the U.S. approval of spot bitcoin ( BTC ) exchange-traded funds to the burgeoning number of companies pledging to buy the largest cryptocurrency for their treasuries, crypto has entered, more than ever before, the mainstream conversation. Bitcoin has increased almost 130% this year, breaking record highs on several occasions. It is currently hovering near the psychological threshold of $100,000. The ETFs approved in January have seen net inflows of $36 billion and amassed over 1 million BTC. In addition, the number of publicly traded companies saying they`re adding bitcoin to their corporate treasury is accelerating. The trend, which started with MicroStrategy (MSTR) in 2020, recently attracted KULR Technology (KULR), a maker of energy storage products for the space and defense industries. The Houston, Texas-based company said it bought 217.18 BTC for $21 million and is allocating up to 90% of the surplus to cash to BTC. Now Bitwise Asset Management, which already has spot bitcoin and ether ETFs, has applied for an exchange-traded fund to track the shares of companies that hold at least 1,000 BTC in treasury. Other requirements for the fund, dubbed Bitwise Bitcoin Standard Corporations ETF, are a market capitalization of at least $100 million, a minimum average daily liquidity of at least $1 million and a public free float of less than 10%, according to the Dec. 26 filing. A second Thursday filing was made by Strive Asset Management, co-founded by Vivek Ramaswamy, a politician in the administration of U.S. President-elect Donald Trump. The Bitcoin Bond ETF seeks exposure through derivative instruments such as MicroStrategy`s convertible securities in an actively managed ETF. The bonds have been a massive success. The 0% coupon bond maturing in 2027 is priced at 150% above par and has outperformed bitcoin since inception. "Since our inception, Strive has called out the long-term investment risks caused by the global fiat debt crisis, inflation, and geopolitical tensions," Strive CEO Matt Cole told CoinDesk. "We strongly believe there is no better long-term investment to hedge against these risks than thoughtful exposure to bitcoin." "Strive`s first of many planned bitcoin solutions will democratize access to bitcoin bonds, which are bonds issued by corporations to purchase bitcoin. We believe these bonds provide attractive risk-return exposure to bitcoin, yet they are not available to be purchased by most investors," he added. Bitcoin.com