Bitcoin price prediction based on other cryptocurrencies using machine learning and time series analysis

Document Type : Article

Authors

1 School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, P.O. Box 11155-4563, Iran

2 School of Industrial Engineering, Sharif University of Technology, Tehran, Iran

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.

Keywords

References

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Scientia Iranica
Volume 30, Issue 1
Transactions on Industrial Engineering (E)
January and February 2023
Pages 285-301

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History

  • Receive Date: 27 February 2020
  • Revise Date: 28 September 2020
  • Accept Date: 16 November 2020

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