AI Trading Bots Fail in Unpredictable Markets: Why Historical Data Isn't Enough for BTC, ETH

Artificial intelligence (AI) trading bots that rely solely on historical market data are likely to underperform or fail during periods of unfamiliar and volatile market conditions. These automated systems, often used for trading cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), are trained on past trends and patterns. When the market encounters unprecedented events, regulatory shifts, or novel macroeconomic factors, these algorithms lack the relevant data to make accurate predictions. This limitation exposes a critical vulnerability in purely data-driven trading strategies, suggesting that human oversight and adaptive models are essential for navigating crypto market uncertainty. Investors should be cautious of over-relying on automated trading tools in such environments.