In unfamiliar market conditions, historical data-driven AI trading bots will falter
Analysis
Price Impact
MedThe faltering of historical data-driven ai trading bots during 'unfamiliar market conditions' like severe selloffs or liquidations implies increased market volatility and less automated stabilization. this could lead to more pronounced human-driven sell-offs during extreme events, affecting overall market sentiment.
Trustworthiness
HighThe information comes from coindesk, a reputable crypto news source, quoting the ceo of bitget and the founder of an agentic trading startup at consensus hong kong 2026.
Price Direction
BearishWhile ai bots are efficient in normal conditions, their inability to handle unprecedented market events suggests that during severe downturns or black swan events, the lack of reliable automated trading could exacerbate declines as human emotional trading takes over. this increases downside risk in volatile periods.
Time Effect
ShortThe article highlights current limitations of ai bots, describing them as 'interns' needing supervision. this suggests that the impact of their potential faltering is a present concern during immediate market shocks, rather than a long-term future problem.
Original Article:
Article Content:
Finance Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email In unfamiliar market conditions, historical data-driven AI trading bots will falter Bitget CEO Gracy Chen says AI trading apps are like interns for now; soon they will be full time employees. By Ian Allison | Edited by Jamie Crawley Feb 11, 2026, 3:26 p.m. Make us preferred on Google Bitget CEO Gracy Chen (CoinDesk) What to know : Unusual market events like the 10/10 liquidations or even last week’s severe selloffs will leave agentic trading models short of the mark. Humans day traders and retail players are too emotional to compete with AI said the founder of an agentic trading startup. Today’s AI trading bots are based on a limited amount of historical data which means totally unfamiliar market events like the 10/10 liquidations or even last week’s severe selloffs will leave agentic trading models short of the mark. These historical data-driven AI models have never seen huge liquidations on a single day and would find this “very unfamiliar” said Bitget CEO Gracy Chen on a panel about agentic trading bots at Consensus Hong Kong 2026 . As such human intervention is needed. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . “As an exchange, we don’t plan to build our own LLM [large language model]. But trading bots are a big thing,” Chen said. “Current AI bots are a bit like an intern: faster, cheaper but needs a little supervision.” However, further down the line this will be more like a “full employee,” and in 3-5 years AI can replace a lot of us, Chen said. These are sentiments heard regularly in the algorithmic trading world when it comes to AI. While complex LLM and machine learning trading technology is improving at a rapid clip, there are still plenty of people who think a human overlay is an essential part of the process – particularly in situations like the severe volatility that recently gripped crypto markets. Joining Chen on the panel, Saad Naj, founder and CEO of agentic trading startup PiP World agreed the tech is in its infancy and that comes with risk. But he pointed out that 90% of day traders and retail players lose money. “As humans we are too emotional. We can’t compete with AI solutions,” Naj said. Consensus Hong Kong 2026 More For You Decentralized AI is in a trough but real opportunities are emerging, crypto VCs say By Francisco Rodrigues | Edited by Jamie Crawley 11 minutes ago Moving away from overhyped GPU marketplaces and large AI model alternatives towards purpose-built, full-stack solutions is the goal. What to know : The crypto-AI intersection is entering a quieter, more selective phase with a shift towards utility-driven applications, crypto VCs said. Moving away from overhyped GPU marketplaces and large AI model alternatives towards purpose-built, full-stack solutions is the goal. Founders need to offer more than just a wrapper on existing AI models like ChatGPT. Read full story Latest Crypto News Decentralized AI is in a trough but real opportunities are emerging, crypto VCs say 11 minutes ago BlackRock takes first DeFi step, lists BUIDL on Uniswap as UNI jumps 25% 30 minutes ago Analysts react as Robinhood slumps 10%, with slowdown in crypto trading weighing on results 44 minutes ago CoinDesk 20 performance update: index trades 2.5% lower as all constituents decline 1 hour ago Bithumb admits to ‘serious flaws’ that left internal systems vulnerable to potential sabotage 1 hour ago Ethena-backed suiUSDe stablecoin goes live on Sui with $10 million yield vault launch 1 hour ago Top Stories U.S. added stronger than expected 130,000 jobs in January, with unemployment rate falling to 4.3% 1 hour ago Recapping day 1 of Consensus Hong Kong 2 hours ago Tokenization still at start of hype cycle, but needs more use cases, specialists say 5 hours ago MrBeast's finance bet could become the new generation's Schwab, Robinhood, Tom Lee says 6 hours ago As bitcoin extends declines, industry figures say it's time to buy 3 hours ago Crypto's banker adversaries didn't want to deal in latest White House meeting on bill 16 hours ago