Forecasting and Analysis of Cryptocurrency Trends

Abstract

The development of financial technology has given rise to a new class of asset known as cryptocurrency, which has presented a significant potential for study. Forecasting cryptocurrency prices is challenging because of their dynamic and volatile nature. There are hundreds of different cryptocurrencies in circulation today. With prospects in peer-to-peer payments, remittance, e-commerce and retail, and media & entertainment, the cryptocurrency business appears to have a bright future. From 2019 to2024, the worldwide cryptocurrency industry is anticipated to expand at a 32% CAGR. The distributed ledger technology's immutability and transparency, the rise in remittances from poor nations, shifting monetary laws, and a sharp rise in venture capital investments are the main factors propelling this market's growth. We created a short-term prediction (between five and thirty days) for the cryptocurrencies using the ARIMA model. When it came to predicting cryptocurrency time series, we discovered that the suggested method outperformed the ARIMA-ARFIMA models in both periods of gradual rising (falling) and transition dynamics (change of trend). Index Terms: digital currency,cryptocurrency, and ARIMA model.