Forecasting of Cryptocurrency Prices Using Machine Learning

Abstract

Blockchain and cryptocurrencies have risen to popularity in the recent years to a great extent due to its increasing trading volumes and huge capitalization in the market. These cryptocurrencies are being used not only for trading but are being accepted for monetary transactions as well these days. As the prices fluctuate and return on investment increases investors, traders and general public are showing increased interest towards bitcoin and altcoins. This research focuses on implement- ing forecasting models that will return accurate price predictions for cryptocurren- cies. Prices for Bitcoin, Ethereum and Litecoin are predicted using the traditional forecasting model for timeseries ARIMA, the Prophet Model and deep learning al- gorithm LSTM. The results of the three models were evaluated and the LSTMModel was found to outperform the Prophet as well as the ARIMA model.