Prediction of cryptocurrency market price using deep learning and blockchain information: Bitcoin and ethereum

Gulani Senthuran, Malka Halgamuge

Research output: Book chapter/Published conference paperChapter (peer-reviewed)

Abstract

Over the last few years, cryptocurrencies have turned into a worldwide wonder known to many people. Bitcoinand Ethereum are widely used at present in global financial markets and so far, have received a significantvalue improvement and market capitalization with Ethereum being more impervious to downgrading than theother cryptocurrencies. The main aim of this study is to ascertain the prediction accuracy of both Bitcoin andEthereum currencies using historical data (blockchain data with cryptocurrency data). This is the first studyof this kind that we are aware of that predicts cryptocurrency prices using a Deep learning algorithm andblockchain information (Bitcoin and Ethereum). To accomplish this task, the blockchain data (2015–2018) ofboth Bitcoin and Ethereum currencies were collected to enhance the security and the prediction rate. Further,the market price of Bitcoin and Ethereum currencies were retrieved online. The effectiveness of the predictionaccuracy was investigated using Deep learning approach with crypto currency data and blockchain data. Theresults of data analysis showed that when the blockchain data were used together with Bitcoin and Ethereumprices, the prediction performance is high for both currencies. In addition, the comparison between Bitcoinand Ethereum revealed that Ethereum currency has the highest percentage of the prediction accuracy and thelowest error rate. Moreover, descriptive analysis was undertaken for blockchain attributes such as difficulty,hash rate, number of transactions, average block size and miner’s revenue. The blockchain data directlyinfluenced the prediction accuracy of both currencies (i.e., Bitcoin and Ethereum). The Deep learningprediction approach was found to be very effective for analysing blockchain and cryptocurrency data set. Theprice prediction of the cryptocurrency market price is vital as Bitcoin and Ethereum are effective in the presentfinancial market.
Original languageEnglish
Title of host publicationEssentials of Blockchain Technology
EditorsKuan-Ching Li, Xiaofeng Chen, Hai Jiang, Elisa Bertino
PublisherTaylor & Francis
Pages349-364
Edition1st
ISBN (Electronic)9780429674457
ISBN (Print)9780367027711
DOIs
Publication statusPublished - 07 Aug 2019

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    Senthuran, G., & Halgamuge, M. (2019). Prediction of cryptocurrency market price using deep learning and blockchain information: Bitcoin and ethereum. In K-C. Li, X. Chen, H. Jiang, & E. Bertino (Eds.), Essentials of Blockchain Technology (1st ed., pp. 349-364). Taylor & Francis. https://doi.org/10.1201/9780429674457-15