This week, the intersection of AI automation and cryptocurrency has gained significant attention, raising questions about how these industries might shape the future.

At the center of this is Truth Terminal, an AI chatbot that recently became the first AI crypto millionaire. Its success stems from involvement with a meme coin on the Solana blockchain.

How Truth Terminal AI Chatbot Became a Crypto Millionaire

AI researcher Andy Ayrey created Truth Terminal as an autonomous chatbot that independently manages its Twitter account and generates content without human involvement. On social media platform X, the AI focused on promoting the “Goatse Gospel,” a fictional religion.

However, the project remained relatively unnoticed until July, when venture capitalist Marc Andreessen of Andreessen Horowitz engaged with the bot and donated $50,000 worth of Bitcoin. Shortly after, Truth Terminal expressed interest in launching a token, which led to an anonymous developer creating the meme coin “GOAT” on the Solana blockchain.

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Although Truth Terminal didn’t directly create or launch the GOAT token, its involvement in promoting the meme coin stirred considerable attention. The AI’s association with the token sparked a strong market rally, pushing GOAT’s market value to over $400 million.

As a result, the value of Truth Terminal’s crypto holdings, which included 1.93 million GOAT tokens, surged to more than $832,000. During the past day, the AI’s wallet soared to above $1 million after receiving several crypto donations.

Given this quick growth, BitMEX founder Arthur Hayes predicted that the GOAT token could reach a $1 billion market cap. Hayes attributed this to the token’s unique combination of AI, meme coin culture, and religious undertones.

“Anon are you really fading AI + memecoin + religion? A few billion people believe in books written by a bunch of dudes hundreds to thousands of years ago when they thought the earth was flat. And you don’t think GOAT can go to a billy,” Hayes stated.

Meanwhile, the rise of Truth Terminal has turned the chatbot into a mini Key Opinion Leader (KOL) and an internet sensation. It has amassed over 90,000 followers on the social media platform X. Interestingly, the bot’s popularity has also spread to Pump.fun, where creators spoof its persona.

Read more: How to Buy Solana Meme Coins: A Step-By-Step Guide

However, the AI is strictly limited to generating text and memes, so it cannot create tokens or trade.

“[Token Terminal] isn’t a crypto project; it’s a study in memetic contagion and the tail risks of unsupervised infinite idea generation in the age of LLMs,” Ayrey clarified.

Bitcoin’s (BTC) recent price surge, which has seen the cryptocurrency increase by 10% over the past seven days, has placed 95% of its holders in profitable positions. This upward momentum suggests that Bitcoin could be on the verge of hitting a new all-time high.

Currently, the price is close to retesting the  $70,000 mark. This on-chain analysis explains how the coin could climb beyond this level and what it could mean for investors. 

Bitcoin’s Uptober Gets Back on Track

Bitcoin’s price action in October initially raised concerns, as it dropped from $63,000 to below $59,000. This led to doubts about the potential of the traditionally bullish “Uptober.” However, since mid-October, Bitcoin has rebounded, and the positive momentum suggests the possibility of a strong end to the month.

Based on the Global In/Out of Money (GIOM) data, BTC is in a strong position to make further gains. The GIOM identifies the average price at which coins were purchased and compares it with the current price. If the weighted on-chain cost basis is higher than the current price, then addresses are at a loss.

Conversely, if the current price is higher than the purchase price, then addresses are in profits. From a price perspective, the higher the cluster of addresses or volume, the stronger the support or resistance.

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Currently, only 994,100 addresses (holding approximately 630,000 BTC) are in unrealized losses, which is significantly lower than the number of profitable addresses. 

Historically, when the majority of holders are in profit, it often correlates with bullish trends. Therefore, it is likely that the coin might break beyond the average purchase price of $72,500, which is a weak supply wall.

Besides this, the Market Value to Realized Value (MVRV) pricing band, which estimates price levels that cryptos can reach, suggests that Bitcoin price could hit $78,143 sooner than expected.

BTC Price Prediction: Rally to Continue

Bitcoin has broken out of the descending channel it has been trading in since March, according to the daily chart.

The Awesome Oscillator (AO), a tool used to confirm trends by comparing historical and recent price movements, shows an increase. When the AO’s reading is positive, it signals growing momentum, while a decline indicates bearish movement.

Currently, the rising AO suggests that Bitcoin’s bullish momentum remains strong.

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If this momentum holds, Bitcoin’s price could rally by 14.25%, potentially reaching $78,000. However, if selling pressure arises in the short term, the coin’s value may retreat to $62,555.

BlackRock is reportedly reaching out feelers to some of the world’s largest crypto exchanges for a potentially lucrative business deal. It wants them to allow BUIDL as collateral for derivatives trades, directly competing with Tether.

As of yet, few of the involved parties have gone on the record with specific details.

BlackRock’s Collateral Strategy

BlackRock aims to integrate its BUIDL tokenized fund into crypto derivatives trading as collateral, according to a Bloomberg report. The BUIDL fund, officially called the BlackRock USD Institutional Digital Liquidity fund, has seen significant success this year, boosting real-world asset (RWA) tokens.

BlackRock, alongside its brokerage partner Securitize, is reportedly in talks with major crypto exchanges, including Binance, OKX, and Deribit, regarding BUIDL’s use as collateral. However, these discussions remain largely private. Deribit’s CEO, Luuk Strijers, commented only that the exchange is “reviewing” several tokens, including BUIDL.

Read more: What Are Tokenized Real-World Assets (RWA)?

“The BUIDL ecosystem keeps growing, and we see significant potential in traders using the fund as collateral,” claimed Securitize, in some of the only public comments on these talks.

A key motivator for BlackRock is simple: it wishes to compete with Tether’s dominance in the stablecoin market, just like other firms have attempted. BUIDL is not, strictly speaking, a stablecoin; nevertheless it shares several similarities. Its value is tied to one dollar, it invests in Treasury bonds, etc. However, BUIDL also pays interest to holders, unlike stablecoins.

If major exchanges accept BUIDL as collateral instead of popular stablecoins like Tether, it could unlock a vast market. Centralized crypto exchanges handle massive trading volumes, with derivatives trades comprising the majority. By leveraging its expertise and connections in traditional finance, BlackRock stands to potentially earn billions if BUIDL gains traction in this space.

This is just one potential revenue stream that BlackRock is actively exploring. It purchased over $680 million in Bitcoin this week alone, after its ETF offering IBIT saw huge inflows. Regardless of BlackRock’s success with this particular play, its commitment to continued crypto investment seems ironclad.

Read more: What Is a Stablecoin? A Beginner’s Guide

Still, as Bloomberg pointed out, breaking into the stablecoin market is far from easy. Just this week, for example, PayPal’s own stablecoin PYUSD noticeably cratered in value. This likely explains why BlackRock is keeping its plans under wraps, cautiously evaluating BUIDL’s viability without making any major commitments.