$ETH AI and the Cryptocurrency Trading Market: Symbiosis and Manipulation

In the past decade, the cryptocurrency market has attracted countless speculators with its extreme volatility and openness. With the explosion of artificial intelligence (AI) technology, a silent revolution has already unfolded in the field of crypto trading.

AI was first introduced to the crypto market as a tool for high-frequency trading (HFT) and quantitative strategies. Through real-time data analysis, sentiment monitoring, and chart recognition, AI can capture minute fluctuations that human traders cannot perceive in milliseconds, thereby maximizing profits. In a 24-hour, sleepless, and unregulated market, the speed and learning capability of AI become overwhelming advantages.

The deeper change is that AI is not only participating in trading but also reshaping the market itself. A large number of machine learning-based trading robots operate day and night, and their collective behavior begins to influence market rhythms—the dramatic rises and falls no longer simply stem from human panic or greed, but are triggered by the antagonism, pursuit, and misjudgment among machines, resulting in chain reactions.

At the same time, AI has also changed the way information flows. Utilizing natural language processing (NLP) technology, AI can scan global social media, news headlines, and on-chain data in real-time, extracting market sentiment and laying out strategies in advance. This “sentiment arbitrage” model further exacerbates the extreme volatility and fragility of the crypto market.