Predictive Analytics in Crypto Trading: Machine Learning's New Frontier
Year: 2024
Type: conference-paper
Abstract: This research explores the application of machine learning (ML) in predicting cryptocurrency price movements, focusing on enhancing predictive accuracy to support informed trading decisions in volatile markets. Employing a quantitative methodology, historical price data and real-time indicators were analyzed using Long Short-Term Memory (LSTM) networks, Support Vector Machines (SVM), and Random Forest (RF) models. LSTM networks outperformed other models with an 88% accuracy rate for Bitcoin, owing to their ability to retain temporal patterns crucial for crypto market predictions. RF and SVM, achieving accuracies of 85% and 82%, respectively, demonstrated balanced performance with lower computational demands. Integrating social media sentiment data further improved model precision by up to 6%, underscoring the importance of non-traditional data sources. Recommendations include prioritizing LSTM for high-volatility assets, utilizing RF for cost-effective applications, and incorporating sentiment data to enhance model robustness. This study demonstrates the utility of ML models in navigating crypto market complexities, offering adaptive tools for traders.
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6967758102
FWCI:
Cites:
Cited by:
Related to: