Investigating the Link Between the Bitcoin Market and Blockchain Data

Additional Funding Sources

This research was supported in part by the National Science Foundation under grant CNS 1461133.

Abstract

In the recent years, Bitcoin and other cryptocurrencies have taken the world by storm. Although these cryptocurrencies promise a decentralized, anonymous, and secure form of payment, their enormous volatility and price fluctuations prevent mainstream adoption. While previous works have focused on link between external factors and the Bitcoin market, our work focuses on the link between Bitcoin market and the Bitcoin blockchain itself without external factors. We explore the use of machine learning in conjunction with blockchain data analysis for market prediction at various time intervals. Additionally, we investigate the presence and prevalence of market indicative features within the Bitcoin blockchain over the past few years.

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Investigating the Link Between the Bitcoin Market and Blockchain Data

In the recent years, Bitcoin and other cryptocurrencies have taken the world by storm. Although these cryptocurrencies promise a decentralized, anonymous, and secure form of payment, their enormous volatility and price fluctuations prevent mainstream adoption. While previous works have focused on link between external factors and the Bitcoin market, our work focuses on the link between Bitcoin market and the Bitcoin blockchain itself without external factors. We explore the use of machine learning in conjunction with blockchain data analysis for market prediction at various time intervals. Additionally, we investigate the presence and prevalence of market indicative features within the Bitcoin blockchain over the past few years.