TheBRRR’s Thoughts

GM,

Bitcoin stole the show over the weekend and into the Monday open, as digital gold broke through the key psychological level of $40,000.

Speculators are positioning ahead of a trifecta of catalysts:

1) January Spot ETF Approval
2) Bitcoin halvening in April (emissions/inflation rate cut in half)
3) Federal Reserve Pivot

To expand on #3, the likelihood of a Fed rate cut in Q1 2024 surged from 21% to 60% over the last week, indicating high potential for further dollar debasement.

That’s a lot of momentum and narrative support for bitcoin - and retail isn’t here yet. Coinbase’s mobile app isn’t in the top 200 of the Apple Store and bitcoin search volume is still muted, according to Google Trends:

Editor’s Note: We’ve released V1 of our technical analysis chatbot. Premium subscribers can see the link in the premium section at the bottom of the email. I released a preview of what it can do in this post, where I ask it to analyze the daily and hourly bitcoin charts.

AI & Tech News

Amazon Q's Troubles

WHAT HAPPENED:

• Hallucinations and Data Leaks: Amazon's new AI chatbot, Amazon Q, reportedly experiences "severe hallucinations" and is leaking confidential data, including AWS data center locations and internal discount programs.

• Amazon's Response: Amazon denies any security issues, stating that Q has not leaked confidential information and that the company is tuning Q during its transition to general availability.

• Industry Analysts' Concerns: Analysts express concerns about Q's readiness for corporate use due to inaccuracies and potential data leaks, emphasizing the need for extensive internal testing before commercial release.

WHY IT MATTERS:

• Generative AI's Challenges: This incident highlights the complexities and potential risks associated with deploying generative AI in enterprise environments.

• The Importance of Proper Training: Experts stress the need for training AI models on high-quality data and incorporating human checks to ensure accuracy and mitigate risks.

• Regulatory Considerations: The situation raises questions about the need for regulations in the AI industry, with experts advocating for self-regulation and responsible AI practices over external regulations.

• Amazon's Market Position: As Amazon competes with established players like Microsoft and Google in the AI space, this incident places additional pressure on Amazon to address these challenges effectively and maintain user trust​

Futurism

Crypto News

Bitcoin Continues Surge Above $40K

WHAT HAPPENED:

Price Surge: Bitcoin reached over $41,000, a 19-month high, after crossing $40,000 for the first time this year.

Key Influences: The surge was fueled by anticipation of a Bitcoin ETF approval and bets on U.S. interest rate cuts on the back of dovish comments from Jerome Powell on Friday.

Yearly Growth: Bitcoin is now up over 145% since the start of the year, showing a strong recovery.

WHY IT MATTERS:

Market Confidence: Recent talks between the SEC and major firms about a potential Bitcoin ETF boost market confidence.

Federal Reserve Influence: Jerome Powell's remarks on interest rates have shaped market expectations, impacting Bitcoin's value.

Resilience Amid Challenges: Despite past market scandals, Bitcoin's recent performance signifies its resilience and growing mainstream interest.

CNBC

Poll of the Day

Friday we asked again about your preferred investment. A tad different results this time, with MSFT edging out for the lead.

AI Art of the Day

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The BRRR is meant for informational purposes only. It is not investment advice. Please consult with your investment, tax, or legal advisor before making any investment decisions.