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http://dx.doi.org/10.6109/jkiice.2021.25.10.1287

Utilizing On-Chain Data to Predict Bitcoin Prices based on LSTM  

An, Yu-Jin (Department of Fintech, Sungkyunkwan University)
Oh, Ha-Young (College of Computing & Informatics, Sungkyunkwan University)
Publication Information
Journal of the Korea Institute of Information and Communication Engineering / v.25, no.10, 2021 , pp. 1287-1295 More about this Journal
Abstract
During the past decade, it seems apparent that Bitcoin has been the best performing asset class. Even without a centralized authority that takes control over, Bitcoin, which started off with basically no value at all, reached around 65000 dollars in 2021, showing a movement that will definitely go down in history. Thus, even those who were skeptical of Bitcoin's intangible nature are stacking bitcoin as a huge part of their portfolios. Bitcoin's exponential growth in value also caught the attention of traditional banking and investment firms. Along with the spotlight Bitcoin is getting from the investment world, research using macro-economic variables and investor sentiment to explain Bitcoin's price movement has shown progress. However, previous studies do not make use of On-Chain Data, which are data processed using transaction data in Bitcoin's blockchain network. Therefore, in this paper, we will be utilizing LSTM, a method widely used for time-series data prediction, with On-Chain Data to predict the price of Bitcoin.
Keywords
Bitcoin; Digitial-gold; On-Chain Data; LSTM; Price;
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