Microsoft’s Copilot AI predicts Bitcoin price for end of 2024

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Last year, and especially in its last quarter, Bitcoin (BTC) – along with much of the crypto market – underwent a significant boom, going from around $16,000 in January 2023 to as high as $44,000 in December 2023 rose.

However, the beginning of this year was characterized by optimism, uncertainty and volatility. At press time, the world’s leading cryptocurrency has gained 0.62% in the last 24 hours to the price of $42,875.

Bitcoin’s initial moves were initially driven by widespread expectations and speculation about the likely SEC approval of mock Bitcoin exchange-traded funds (ETFs), and the cryptocurrency only became more volatile in the wake of the January 10 ETF approvals, with BTC climbed above $48,000. month before significantly withdrawn.

What’s more, in three months, another event is likely to have a major impact on the digital asset’s price – the Bitcoin halving.

With these hopes, fears and uncertainties in mind, and with Microsoft (NASDAQ: MSFT ) recently releasing its artificial intelligence (AI) platform – Copilot – based on OpenAI’s ChatGPT 4 model – Finbold decided to use the large language model (LLM) to ask where BTC might find itself at the end of 2024.

Three versions, one methodology

While other AI platforms also offer their users a choice of different models and plugins, Microsoft’s Copilot is modular and allows for three distinct conversational tones – Balanced, Accurate and Creative.

With this in mind, Finbold decided to give the same set of directions to each of the “tones” and see how their estimates might differ. Initially, the AI ​​was given the broad framework of the conversation – a hypothetical scenario intended to result in a credible estimate.

The decision to preempt the conversation with the disclaimer that there is an understanding that the scenario is highly speculative is largely driven by experiences with ChatGPT – a platform very afraid to speculate on prices unless in no uncertain terms terms is said to have an understanding that in fact it cannot reliably see the future.

The second and main assignment was intended to explain the task in detail. Limiting the range to a maximum of $3,000 is the result of past experience as – in the wildest case within memory – another AI platform estimated that Bitcoin would be worth between $9,000 and $250,000 in a few months .

Copilot estimates Bitcoin price at the end of 2024

Copilot’s balanced and creative modes offered the exact same price range as a likely place Bitcoin could find itself at the end of 2024 – between $60,000 and $63,000. The main difference, it turns out, was in their justification for the estimated range.

Creative Copilot briefly touched on several important points – the AI ​​said that the halving would likely push prices higher and that the ETF approvals would increase interest, exposure and liquidity. It also pointed to Ethereum 2.0 as a major competitor to Bitcoin and explained that it sees a gradual normalization of monetary policy as a stabilizing factor.

The Balanced Copilot was significantly more focused on the math around the halving. For example, it explained that, based on historical data, it expects post-halving Bitcoin to rise to 1.5 of its previous high – to reach $97,295 – but added that it believes it is safe to assume that ‘ a correction of between 33% and 41% leading to its estimated range of $60,000-$63,000.

As its name would suggest, the Precise Copilot was considerably more reluctant to speculate and landed at a very conservative estimated year-end price range – between $45,000 and $48,000.

This “tone” also offered little explanation for the estimate, other than assuming a continuation of trends and factors it previously explained — the greater exposure the ETFs provide, the likely impact of the halving, the move to a somewhat clearer regulatory framework, and broad economic factors.

Disclaimer: The content on this website should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.