Predicting Digital Asset Prices using Natural Language Processing: a
survey
- URL: http://arxiv.org/abs/2212.00726v1
- Date: Mon, 28 Nov 2022 17:37:06 GMT
- Title: Predicting Digital Asset Prices using Natural Language Processing: a
survey
- Authors: Trang Tran
- Abstract summary: The rise of Machine Learning, and Natural Language Processing, in particular, has shed light monitoring and predicting the price behaviors of cryptocurrencies.
This paper aims to review and analyze the recent efforts in applying Machine Learning and Natural Language Processing methods to predict the prices and analyze the behaviors of digital assets such as Bitcoin.
- Score: 2.806897141084325
- License: http://creativecommons.org/licenses/by/4.0/
- Abstract: Blockchain technology has changed how people think about how they used to
store and trade their assets, as it introduced us to a whole new way to
transact: using digital currencies. One of the major innovations of blockchain
technology is decentralization, meaning that traditional financial
intermediaries, such as asset-backed security issuers and banks, are eliminated
in the process. Even though blockchain technology has been utilized in a wide
range of industries, its most prominent application is still cryptocurrencies,
with Bitcoin being the first proposed. At its peak in 2021, the market cap for
Bitcoin once surpassed 1 trillion US dollars. The open nature of the crypto
market poses various challenges and concerns for both potential retail
investors and institutional investors, as the price of the investment is highly
volatile, and its fluctuations are unpredictable. The rise of Machine Learning,
and Natural Language Processing, in particular, has shed some light on
monitoring and predicting the price behaviors of cryptocurrencies. This paper
aims to review and analyze the recent efforts in applying Machine Learning and
Natural Language Processing methods to predict the prices and analyze the
behaviors of digital assets such as Bitcoin and Ethereum.
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