DAM: A Universal Dual Attention Mechanism for Multimodal Timeseries Cryptocurrency Trend Forecasting

• URL: http://arxiv.org/abs/2405.00522v1
• Date: Wed, 1 May 2024 13:58:01 GMT
• Title: DAM: A Universal Dual Attention Mechanism for Multimodal Timeseries Cryptocurrency Trend Forecasting
• Authors: Yihang Fu, Mingyu Zhou, Luyao Zhang,
• Abstract summary: This paper presents a novel Dual Attention Mechanism (DAM) for forecasting cryptocurrency trends using multimodal time-series data. Our approach integrates critical cryptocurrency metrics with sentiment data from news and social media analyzed through CryptoBERT. By combining elements of distributed systems, natural language processing, and financial forecasting, our method outperforms conventional models like LSTM and Transformer by up to 20% in prediction accuracy.
• Score: 3.8965079384103865
• License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
• Abstract: In the distributed systems landscape, Blockchain has catalyzed the rise of cryptocurrencies, merging enhanced security and decentralization with significant investment opportunities. Despite their potential, current research on cryptocurrency trend forecasting often falls short by simplistically merging sentiment data without fully considering the nuanced interplay between financial market dynamics and external sentiment influences. This paper presents a novel Dual Attention Mechanism (DAM) for forecasting cryptocurrency trends using multimodal time-series data. Our approach, which integrates critical cryptocurrency metrics with sentiment data from news and social media analyzed through CryptoBERT, addresses the inherent volatility and prediction challenges in cryptocurrency markets. By combining elements of distributed systems, natural language processing, and financial forecasting, our method outperforms conventional models like LSTM and Transformer by up to 20\% in prediction accuracy. This advancement deepens the understanding of distributed systems and has practical implications in financial markets, benefiting stakeholders in cryptocurrency and blockchain technologies. Moreover, our enhanced forecasting approach can significantly support decentralized science (DeSci) by facilitating strategic planning and the efficient adoption of blockchain technologies, improving operational efficiency and financial risk management in the rapidly evolving digital asset domain, thus ensuring optimal resource allocation.

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