Since its launch, Grok has conquered the attention of X (formerly Twitter) users and cryptocurrency enthusiasts. Grok is an artificial intelligence model developed by xAI, an X subsidiary owned by Elon Musk.
Elon Musk’s AI differentiates itself from other models because it is supposedly a more “open-minded” model. It also provides relatively updated information due to its capacity to directly access user posts on X. Interestingly; Grok previously picked a cryptocurrency to be used for payments on Musk’s social platform.
Now, Finbold has turned to the xAI flagship product for insights on Bitcoin’s (BTC) price for the end of 2024. For this experiment, we asked for a bullish and a bearish prediction, followed by a brief analysis.
In particular, Grok forecasted Bitcoin would trade between $85,000 and $100,000 in its bullish outlook. Meanwhile, the bearish outlook set the leading cryptocurrency’s price from $30,000 to $40,000.
Grok’s bullish and bearish analysis of Bitcoin in 2024
Grok’s bullish outlook on Bitcoin
“Given the recent approval of the Bitcoin spot ETF and the upcoming block subsidy halving in April 2024, Bitcoin could see significant upward momentum. If the ETF approval leads to increased institutional adoption and the halving reduces the rate at which new Bitcoins are created, this could create a supply squeeze, pushing the price higher. Additionally, the growing mainstream acceptance of cryptocurrencies could also contribute to Bitcoin’s price appreciation.
Taking these factors into account, a bullish price prediction for Bitcoin by the end of 2024 would be in the range of $85,000 to $100,000.”
— Grok, by xAI
Grok’s bearish price prediction for Bitcoin
“On the flip side, Bitcoin’s price could be negatively impacted by regulatory uncertainty or a global economic slowdown. If governments impose stricter regulations on cryptocurrencies or if the global economy enters a recession, this could dampen investor sentiment and lead to a sell-off in Bitcoin and other cryptocurrencies.
Taking these factors into account, a bearish price prediction for Bitcoin by the end of 2024 would be in the range of $30,000 to $40,000.”
— Grok, by xAI
Conclusion
In summary, a bull run to Grok’s highest forecast would result in 135% gains from current prices at $42,420. On the other hand, a drop to Grok’s $30,000 would punish investors by 30%, erasing one-third of their holdings in dollars. This suggests an appealing risk-reward, with a possible 2.5 times increase to $100,000.
However, artificial intelligence is prone to make mistakes, and investors must remain cautious. For example, BTC has lost close to 10% of its value since day one of the Bitcoin spot ETFs tradings. This alone raises questions about the positive effects mentioned by Grok.
All things considered, cryptocurrencies remain highly unpredictable despite the best guesses provided by experts or well-developed AIs like Grok.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Source: https://finbold.com/grok-predicts-bitcoin-price-for-the-end-of-2024/