Prophetic Analysis of Bitcoin price using Machine Learning Approaches

Abstract

The most significant disturbance now affecting all economies and financial institutions is the digital transformation of economies. The world’s economy and financial institutions are digitizing at an unprecedented rate. Bitcoin is a devolved crypto-currency, or digital asset, that uses blockchain technology to expedite peer-to-peer financial transactions. Price volatility is one of the primary issues with decentralized cryptocurrencies, highlighting the need of examining the underlying price mechanism. Additionally, Bitcoin prices display non-stationary behaviour, meaning that their statistical distribution fluctuates over time. Bitcoin prices are stochastic, and no one set of characteristics can be used to forecast them completely. Nonetheless, academics have demonstrated varying degrees of effectiveness in estimating Bitcoin values using various feature sets. This article explains how to forecast Bitcoin price movements and prices using machine learning approaches. We intend to apply ARIMA, Facebook Prophet and XGBoost techniques for price prediction.