Methods and apparatus for bit prediction and data compression are provided. In the bit prediction method and apparatus, a specific Suffix Trie is used to maintain a statistical model to predict the next bit in a bit-stream. The statistic model provides the probability for each next or following bit in the bit stream, where an entropy encoder/decoder further encodes/decodes the predicted bit. The algorithm simplicity and its high performance relies on the combination of the specific method of Suffix Trie construction and growing, and the specific way to compute, update and propagate the probability across Suffix Trie nodes. The specific and particular method to grow the Suffix Trie in conjunction with the specific method to compute, update, and propagate the probability across Suffix Trie nodes are key aspects and subject matter of the present invention.