Bitcoin Price Prediction Based on Other Cryptocurrencies Using Machine Learning and Time Series Analysis

Abstract

Cryptocurrencies, which the Bitcoin is the most remarkable one, have allured substantial awareness up to now, and they have encountered enormous instability in their price. While some studies utilize conventional statistical and econometric ways to uncover the driving variables of Bitcoin's prices, experimentation on the advancement of predicting models to be used as decision support tools in investment techniques is rare. There are many different predicting cryptocurrencies' price methods that cover various purposes, such as forecasting a one-step approach that can be done through time series analysis, neural networks, and machine learning algorithms. Sometimes realizing the trend of a coin in a long run period is needed. In this paper, some machine learning algorithms are applied to find the best ones that can forecast Bitcoin price based on three other famous coins. Second, a new methodology is developed to predict Bitcoin's worth, this is also done by considering different cryptocurrencies prices (Ethereum, Zcash, and Litecoin). The results demonstrated that Zcash has the best performance in forecasting Bitcoin's price without any data on Bitcoin's fluctuations price among these three cryptocurrencies.

Cryptocurrency Price Prediction for Next 30 Days with Machine Learning

“…"Bitcoin Price Prediction Based on Other Cryptocurrencies Using Machine Learning and Time Series Analysis" A wide range of approaches, including time series analysis, neural networks, and machine learning, are covered in the subject matter. Zcash outperformed Ethereum and Litecoin in terms of forecasting the values of the other three well-known cryptocurrencies [4].…”

Investigation of the Feasibility of Including Different Cryptocurrencies in the Investment Portfolio for Its Diversification

“…The primary reason for creating Bitcoin was the motivation to create digital cash: a payment system that would be similar to cash, incorporate the useful features of cash, and allow electronic transactions (Berentsen & Schär, 2018). Bitcoin is generally considered to be the main decentralized digital currency (Maleki et al, 2020), which has become popular due to its proposed anonymity in transactions and independence from traditional financial service providers (David et al, 2021). Inci and Lagasse (2019) define cryptocurrency as online cash that can be considered as valuable digital information as long as no one else has access to value-added information, and its creation is based on the need for online cash and the pursuit of anonymity.…”

Application Deep Learning to Predict Crypto Currency Prices and their Relationship to Market Adequacy (Applied Research Bitcoin as an Example)

“…al. [8] (2020) presented a paper aimed at predicting the price of Bitcoin based on analysis of price data for four different cryptocurrencies in order to understand the main trends and see if their chain is stable. Practically, the price behavior of each digital currency follows a random walk process, which makes it difficult to predict.…”