The use of artificial intelligence (AI) in cryptocurrency and digital asset markets has transformed investment methods; however, AI trading bots that rely on historical data may underperform in the current volatile and unusual market conditions. Gracey Chen, CEO of Bitget, a globally recognized crypto exchange emphasizing advanced trading technology and automation, stated that AI trading applications currently function like interns but are expected to evolve into full-time employees soon. Traditional AI models based on past market data struggle to cope with unexpected and rapidly changing scenarios because these bots make decisions by analyzing historical trends and patterns, which do not always hold true in uncertain future environments. This situation poses challenges for investors and traders, as automated systems may generate false signals amid sudden market fluctuations and unforeseen events. Chen also highlighted that AI technology is advancing rapidly and will soon become more effective and reliable, reducing human intervention and enhancing accuracy in investment decisions. Given the crypto market’s inherent volatility and technical complexities, investors are advised to treat AI tools as supportive aids rather than sole reliance, emphasizing diversification and cautious strategies. While AI trading bots have revolutionized trading, fully trusting their performance under current uncertain conditions could be risky. In the future, as AI systems become more sophisticated and better at understanding market movements, these bots will play a significant role in investment, but further research and development are necessary to ensure their effectiveness during extraordinary market situations.
Source: coindesk
