"The Machine Learning Race: Can Algorithms Truly Predict Bitcoin’s Vola" by Prashant Basyal
 
The Machine Learning Race: Can Algorithms Truly Predict Bitcoin’s Volatility

The Machine Learning Race: Can Algorithms Truly Predict Bitcoin’s Volatility

Date

2-20-2025

Faculty Mentor

Monica Trifas, Mathematics, Computing & Information Sciences

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Files

Submission Type

Conference Proceeding

Location

8:15-8:25 am | Houston Cole Library, 11th Floor

Description

An unpredictable, chaotic, and endlessly fascinating whirlwind is the Bitcoin market. We test the limits of human intelligence and machine accuracy as we observe its erratic movements, posing the straightforward but important question: Can algorithms really make sense of something so unpredictable?

We tested a variety of machine learning models in this study, ranging from more sophisticated neural networks like RNNs and LSTMs to more conventional techniques like decision trees and support vector machines. Like a lone explorer, each model looks for the mysterious patterns concealed in the price and volume swings of Bitcoin. While deeper models take their time, processing the complexities, but at a cost, others move quickly but only touch the surface.

But which strategy is most effective? That's what we want to learn. By contrasting these models side by side, we can determine whether more straightforward algorithms are sufficient or whether deep learning's added complexity actually gives an advantage. Does efficiency and speed trump more profound understanding? Or do complexity and patience result in more accurate forecasts?

However, this is about more than technology. It speaks to something deeply human—the insatiable desire to predict, comprehend, and impose order on chaos. Regardless of how sophisticated our models become, Bitcoin remains unpredictable, reminding us that even the brightest minds and most advanced algorithms are sometimes simply looking for meaning in the unknown. Some modern neural networks detect many noises in data, whereas traditional algorithms barely detect anything. The approach to find the perfect model should be by utilizing the different algorithms and adding the market sentiments through social media, news, and many more.

Keywords

student research, computing

Rights

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Disciplines

Computer Sciences

The Machine Learning Race: Can Algorithms Truly Predict Bitcoin’s Volatility

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