ChatGPT-Style Crypto App Sets AI Loose on Fed Rate-Bitcoin Price Relationship

The team behind Hong Kong-based Chain of Demand has built investment analytics engines for financial institutions and data providers like Bloomberg.

AccessTimeIconJun 13, 2023 at 11:30 a.m. UTC

Riding the artificial intelligence (AI) popularity wave, investment data analytics firm Chain of Demand is providing a widget that examines bitcoin (BTC) price movements around the time of U.S. interest-rate changes just ahead of Wednesday's Federal Reserve rate announcement.

The Chain of Demand dashboard creators, who have worked on complex machine-learning engines with financial institutions and data providers such as Bloomberg, have pivoted into AI chatbots, specifically the popular language-recognition engine ChatGPT (Generative Pre-trained Transformer.)

Technology-focused hedge funds tend to hire postgraduates with science backgrounds to conduct complex statistical analysis on very large data sets or to apply natural language processing. The explosion of generative AI platforms is leveling the playing field and is potentially well matched to the retail-first crypto trading space.

An investor interested in bitcoin price movements around Fed rate announcements, for example, would want fast and easy access to a range of insights that go much deeper than a generic ChatGPT response, CEO AJ Mak said.

“We add in our own datasets and signals,” he said in an interview with CoinDesk. “When looking at [the] bitcoin price the day after the last 10 Fed rate announcements, I can then ask what else impacts the price. So that could be indicators of social sentiment around bitcoin and whale transactions over $100,000, for example.”

This week’s Fed rate/bitcoin price pattern modeler offers a teaser of what’s to come, Mak said. The Hong Kong-based company's dashboard is in beta testing and will be rolled out in about two months, he said.

Edited by Sheldon Reback.

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Ian Allison

Ian Allison is an award-winning senior reporter at CoinDesk. He holds ETH.