A New Stage in the Evolution of Cryptocurrency Markets: Analysis by Hurst Method

Abstract

Abstract In this study, it is examined how to improve the effectiveness of bitcoin market. In this framework, firstly, a wide literature review is made, and different factors that may be effective in this regard are identified. Afterward, an analysis is performed with Hurst method to determine which of these factors are more important. The study of cryptocurrency volatility is important in terms of financial instruments for hedging traditional assets, as well as in terms of pricing. The above results would be particularly useful in terms of portfolio management and risk management. This study discusses various financial issues related to cryptocurrencies, as well as some problems associated with the problems of their forecasting. To solve the problems of forecasting, the authors have not only studied, but also improved the forecasting method based on the machine learning algorithm in the MATLAB system using the tree model. Most of the analysis in the document relies heavily on studies by authors studying this issue. They can help make more informed decisions regarding financial investments and avoid the risks of using cryptocurrencies. The results may also assist regulators in creating a favorable legal environment for the functioning of the cryptocurrency market.