Based on the data collected from January 2020 to December 2020, the Bitcoin forecast study also highlights that the AI-driven algorithm has been consistently delivering forecasts with precision above 56.90% for all time horizons. The report covered forecast horizons ranging from 3 days to 3 months.

Bitcoin Hits All-Time High in 2020

COVID-19 and 2020 have been extremely good for Bitcoin, overall. The recent US stimulus package of around $2.4 trillion to the economy spending increased the level of inflation and decreased the dollar’s purchasing power against the rest of the world’s currencies and cryptocurrencies. Cryptocurrencies and Bitcoin, in particular, have garnered new interest from both Wall Street and Main street investors in recent weeks as companies and traditional investors embrace digital tokens. Bitcoin started 2020 at $7,200. It ended the year at a new all-time high - nearly $30,000, up 296%, and continued its growth. Just this weekend, it soared and passed the $34K milestone in total accordance with another Bitcoin price prediction research article published by I Know First back in summer 2019 – the resulting growth since this AI-driven prediction came at some 310%. With all this said the following results released by the I Know First team show draw your interest, especially if you are still unsure about the Bitcoin faith in 2021.

Evaluation Report Summary

I Know First, an artificial intelligence stock forecast company, released a new report on its algorithm's performance for the Bitcoin price. The report covered the period from January 1, 2020, until December 7, 2020, which covered the ongoing coronavirus crisis emergence and expansion over the globe, when the markets became more volatile and unpredictable than before. Despite that, the company was still successfully generating the AI-driven Bitcoin forecasts, delivering them to clients daily and allowing them to invest their money with significantly fewer risk exposures. Moreover, the algorithm's hit ratio improved in comparison to the previous report conducted for the period from January 2019 to October 2019.

The algorithm has shown strong performance in all time horizons forecasts. The best indicator result was obtained for forecasts with a time horizon of 3 months when the algorithm correctly predicted 78.77% of the price movements for USD/BTC and 77.65% for BTC/EUR pairs. The performance in terms of its accuracy for the other time horizons stayed between 56.9% and 61.54%. I Know First also highlights that longer time horizons tended to demonstrate higher precision rates, which is common for many predictive machine-learning-based algorithms, but still is way above better the traditional human-made predictions, especially during this period. A longer timeframe provided a clearer indication of a trend in the data, making it easier for the algorithm to pick it up and make an accurate prediction.

Nevertheless, even the forecasts for the shortest time horizon have demonstrated an accuracy rate well above the conventional machine-learning waterline of 56%. This means that I Know First customers can be certain in the forecasts they are getting are based on statistically meaningful relationships picked up by the AI algorithm in the fresh market data and can be used as a solid basis for decision-making.

The I Know First Predictive AI algorithm

I Know First was recently recognized by Geneva WealthTech Forum as one of the top fintech companies for the development and successful deployment into action a proprietary artificial intelligence in financial markets algorithm that provides quant trading forecasts for over 10,500 assets, including its daily gold price forecast, currency predictions, and forecasts for majority of the well-known cryptocurrencies - Bitcoin, Ethereum, BinanceCoin, Litecoin, and others. Moreover, the company also provides daily AAPL stock news and weekly Apple news briefings at the specially dedicated portal apple-stock-news.com.

The algorithm is provided with market data that trails back 15 years to process every day, making sure its output reflects the up-to-date market conditions. By that, our stock market forecasts represent a holistic approach to the market. I Know First algorithm treats global and local markets as a chaotic dynamic system, where a seemingly small event can have tremendous repercussions. Therefore, it ensures that its models accurately reflect statistical patterns of the markets.

The algorithm also incorporates the concept of the genetic algorithm, allowing the system to keep track of its own successes and failures and re-configuring its models, as necessary. This ensures high algorithm’s adaptability to constantly changing market conditions reflected in the daily market data. The resulting design eliminates any potential human bias in the system making our stock market outlook purely objective and statistically based.

The forecasts are delivered as an easy to interpret heatmap, which includes two numerical indicators, signal, and predictability. The former indicates if a given asset is expected to go up (positive values) or down (negative values), while the latter demonstrates how accurate the algorithm was in its past predictions for this specific asset. The algorithm generates predictions for six time horizons, varying from three days to one year, which makes it worthy both for short-term trading and long-term investment.