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AuthorMahdi, Esam
AuthorLeiva, Victor
AuthorMara'Beh, Saed
AuthorMartin-Barreiro, Carlos
Available date2023-12-06T09:34:56Z
Publication Date2021
Publication NameSensors
ResourceScopus
ISSN14248220
URIhttp://dx.doi.org/10.3390/s21186319
URIhttp://hdl.handle.net/10576/50169
AbstractIn a real-world situation produced under COVID-19 scenarios, predicting cryptocurrency returns accurately can be challenging. Such a prediction may be helpful to the daily economic and financial market. Unlike forecasting the cryptocurrency returns, we propose a new approach to predict whether the return classification would be in the first, second, third quartile, or any quantile of the gold price the next day. In this paper, we employ the support vector machine (SVM) algorithm for exploring the predictability of financial returns for the six major digital currencies selected from the list of top ten cryptocurrencies based on data collected through sensors. These currencies are Binance Coin, Bitcoin, Cardano, Dogecoin, Ethereum, and Ripple. Our study considers the pre-COVID-19 and ongoing COVID-19 periods. An algorithm that allows updated data analysis, based on the use of a sensor in the database, is also proposed. The results show strong evidence that the SVM is a robust technique for devising profitable trading strategies and can provide accurate results before and during the current pandemic. Our findings may be helpful for different stakeholders in understanding the cryptocurrency dynamics and in making better investment decisions, especially under adverse conditions and during times of uncertain environments such as in the COVID-19 pandemic.
SponsorThis research was partially supported by FONDECYT, project grant number 1200525 (V.L.), from the National Agency for Research and Development (ANID) of the Chilean government under the Ministry of Science, Technology, Knowledge and Innovation.
Languageen
PublisherMDPI
SubjectArtificial intelligence
Data science
Digital currency
Gold
Machine learning
SARS-CoV-2
Sensing and data extraction
TitleA new approach to predicting cryptocurrency returns based on the gold prices with support vector machines during the COVID-19 pandemic using sensor-related data
TypeArticle
Issue Number18
Volume Number21
dc.accessType Open Access


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