Time-Series Forecasting of Bicoin Prices

Abstract

Since 2008, when the cryptocurrency was first introduced under the name Satoshi Nakamoto, more and more people are interested in the «new money» – Bitcoin. Bitcoin is the first cryptocurrency and although many other cryptocurrencies were created and will be created in the future, Bitcoin remains the most popular cryptocurrency to this day. Naturally, along with the rapid growth of information technologies and their applications, many new «computerized» currencies will emerge. Because anyone can buy and sell cryptocurrency (e.g. bitcoin) and, thus, cryptocurrency is a subject of trade, hence cryptocurrency and in particular bitcoin is a product. Naturally, questions arise about the determinants of cryptocurrency price changes. In particular: Are the changes in the prices of cryptocurrency (and in particular Bitcoin) related to the development trends of the global economy? Are changes in the prices of cryptocurrency (and in particular Bitcoin) related to indicators of the state of the global economy, such as the well-known indices DJII, Nasdaq, S&P 500 and others. Thus it is interesting to see whether it is possible to predict changes in the prices of cryptocurrencies (and in particular Bitcoin) using different methods of time series.