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The G code Triple Double: BTC, AI and De-dolarisation

The G Code triple double is our weekly snap newsletter covering everything bitcoin, crypto, trading and G Code community related. Each week we aim to cover 3 critical market insights and 2 boss trades our community have executed during the week. Please be very aware that anything written is not financial advice and simply provided for informational purposes only.

Bitcoin this week

A very quick look at a simple analysis of Bitcoin's price, and you could argue that there is some strong bullish momentum in the market. BTC surged past the $29,000 mark, which was achieved in less than a week, and is presently trading at around the $29,400 zone. In the last 48 hours, the BTC/USD market has experienced a robust increase of about 8%, and if the bullish trend continues, the BTC token might aim to break and hold that $30,000 mark soon.

Despite the brief bearish exhaustion signals that pushed the price below $27,000 and the significant sell-off that impacted the entire cryptocurrency market, the buying pressure seems powerful towards the end of this week, and Bitcoin appears to be back on track, to try again for the mid 30's. The caveat here is the age old saying "Sell in May and go away".

Over the past few days, the trading volume has impressively increased, with BTC sats worth over $25 billion traded, representing a gain of over 65%. Moreover, the market capitalization has seen a rise of around 8.81%, currently standing at $570 billion, potentially indicating a bullish sentiment in the market.

The emerging power of AI

Since its launch in November 2022, ChatGPT has created a frenzy of speculation about the possible ways artificial intelligence (AI) could revolutionize cryptocurrency trading, sparking a huge boom in AI crypto tokens in early 2023. Crypto trading bots, decentralized finance (DeFi) bots, and AI bot marketplaces are the latest tools and techniques available. These bots are designed to help investors generate returns and manage risks, with ChatGPT capable of generating computer code based on simple natural language prompts. For instance, investors can ask ChatGPT to generate a code for a dollar-cost averaging (DCA) Bitcoin strategy or an NFT smart contract that pays royalties with every NFT sale - of coarse nothing as good as The G Code Algo! #IYKYK!

Additionally, ChatGPT is now used by Coinbase for token risk analysis. However, we would humbly advise our G Code community here to be cautious as almost everything associated with ChatGPT and AI is still in their very early stages. Nonetheless, the potential of generative AI models such as ChatGPT is enormous, and the AI cryptocurrency trading revolution is just getting started. Will they be the darling of the next bull market?

Is de-dollarisation a thing?

According to former Goldman Sachs chief economist Jim O'Neill, the BRICS bloc should expand and challenge the dominance of the U.S. dollar in order to counter the destabilizing effects that the dollar's dominance has on other nations' monetary policies. Over a dozen countries have expressed interest in joining the group, including Saudi Arabia and Iran. The bloc plans to determine this year whether to admit new members and establish entry criteria. O'Neill believes that new members should be more than just countries with large populations and sizable economies, and that BRICS need to work on expanding its influence with the World Bank and International Monetary Fund.

The de-dollarization trend by countries such as China and Russia has dominated headlines over the past year and in particular the last few weeks. Central banks have bought a record amount of gold, led by emerging nations like Turkey and China. Recently, China has stepped up the use of the Yuan as a trade settling mechanism. The yuan-denominated trade flows between Russia and China surged last year. Russian President Vladimir Putin said he supports using the Chinese yuan for trade settlements between Russia, Asia, Africa, and Latin America, and China completed the first yuan-settled LNG trade with France's TotalEnergies. China also struck a deal with Brazil to trade in their own country's currencies, and China is becoming a major lender to debt-heavy nations, such as Turkey, Argentina, and Sri Lanka. The U.S. dollar's loss of its reserve currency status is catching the attention of many public figures, including Elon Musk, who has tweeted that it is a "serious issue" and that the U.S. policy has been "too heavy-handed, making countries want to ditch the dollar." Watch this space G Code fams this could all have serious ramifications for BTC and crypto currencies in general.

Members in our community killing it lately, as per usual!

Newly patched member LukeFX with a nice trade here:

And CryptoOcean_AU printing money with multiple winning trades!

Until next time! Gustavo.

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