Welcome to Bitcoin Price Forecasting!
In this repository, we explore techniques to forecast Bitcoin prices. This is mostly an exercise in time series prediction.
In our example, we use Facebook's Prophet to forecast Bitcoin's future price. Along the way, we use additional information about the Bitcoin network to improve our predictions. As a bonus, we also predict Ethereum's price.
Price data for Bitcoin and Ethereum were obtained from Yahoo! Finance.
For the regressors, we use a variety of additional data provided in this repository for convenience. We include
- the number of unique addresses
- the difficulty of mining as time progresses
- the hash rate
- the total number of Bitcoins in circulation
- the S&P 500 index value
- the US 13 week Treasury Bill rate
- the number of transactions excluding popular addresses
- the average block size in MB
- search trend sentiment from Google Trends
Bitcoin and Ethereum network data were obtained from Quandl.
Disclaimer: the work in this notebook should not be be used in making financial decisions. Please understand the risks involve when trading cryptocurrencies or any financial instrument.