A Leading Indicator Approach with Data Mining Techniques in Analysing Bitcoin Market Value

Abstract

In the last decade as a result of the changes in business landscape new payment systems have evolved. Some of the Consumers, business stakeholders, investors and individuals turned to different types of payment systems and virtual currencies for various reasons. Peer to peer architectured Bitcoin which uses a blockchain mechanism is one of these approaches that found place in our lives. In this study, a leading indicator focused data mining methodology has been followed in analyzing Bitcoin market value and bitcoin valuation. Several classification and clustering algorithms applied to the data following a literature review, pre-processing of the data and conceptual framework formation. Finaly performances of these supervised and unsupervised machine learning techniques with rules discovered have been compared, assessed and presented for this type of problem and research domains.