Bitcoin Price Forecast — A Prediction using ARIMA Model

Abstract

The investors in India are pouring to cryptocurrencies in unprecedented numbers, and the trend may indeed be hazardous. Many experts say that more investors would rush to digital currency in the coming years. While this has been a cause to rejoice for the crypto-exchanges in India, which has also attracted financing from international investors, the surge is taking place in the absence of rigorous regulations from the part of central bank or the state. Due to the obvious fact of Indian government’s previous connection with cryptocurrencies, this would be particularly troublesome. Apart from the government's viewpoint, the lack of laws exposes Indian investors to further dangers. The most significant regulatory risk is that bad players may enter the market. For the time being, Bitcoin exchanges and investors appear to have taken the RBI’s new notice as a green light. This might be an oversimplification, and the magnitude of the risk, given the size of the investments, could be disastrous. Therefore, the study evaluates if the investment in bitcoins is risky or not with the ARIMA analysis to examine the price of Bitcoin in Indian Rupee up to a projected period of 20-07-2021.