Predicting bitcoin prices - ANN approach

Abstract

Bitcoin, the first cryptocurrency is believed to be designed by Satoshi Nakamoto in 2009 as a peer-to-peer structure whereby users can handle directly without requiring an intermediary. Cryptocurrencies have enjoyed some success and 'bitcoin' is now the largest cryptocurrency, with the total number of bitcoins currently valued at approximately 70 billion US dollars. However, globally there are economies which favour the bitcoin and some have banned the same. While many day traders have cash out their funds, veteran traders remain unfazed. In this scenario, it is essential to look into their price behaviour which reveals that there is huge a fluctuation, i.e., highly volatile in nature. Henceforth, their relationships with the trading volume, money supply, lag prices which influences the trade in bitcoin are measured using the ANN model revealing highly significant relationship.