Enhancing Cryptocurrency Value Prediction: A Comparative Study of Novel Random Forest and K-Nearest Neighbor Algorithms for Improved Accuracy

Abstract

The effectiveness of the Novel Random Forest (RF) Algorithm for predicting cryptocurrency prices was evaluated and compared to the K-Nearest Neighbor (KNN) Algorithm. Machine learning methods were used to develop the two algorithms, and a pretest power analysis was conducted using two groups with the iteration of 10 at 85% of G-power and the setup parameters are alpha = 0.05 and beta = 0.85. Hence the P value is less than 0.005 (P<0.05) there is a statistical significance (p=0.007) between these two algorithms. The Novel RF Algorithm achieved an accuracy of 87.7330%, while the KNN Algorithm achieved an accuracy of 72.1250%. When the two algorithms were compared using an independent sample t-test, the difference in accuracy was found to be statistically significant at 0.760.