Modelling Cryptocurrency Price Action: A Machine Learning Perspective

Cryptocurrency, emerging as the latest asset class in the finance sector, is distinguished by its entirely digital nature. Unlike traditional assets, I have a view that cryptocurrencies embody a blend of features from stocks and commodities, making them uniquely positioned for analysis through machine learning techniques. This blog post delves into the nuances of modelling cryptocurrency price action, emphasizing both short-term and long-term perspectives. Understanding Cryptocurrency as a Hybrid Asset Class: Cryptocurrency's digital-only presence and decentralised structure set it apart from conventional asset classes. Its behaviour reflects aspects of both stocks and commodities, influenced by market dynamics, investor sentiment, and technological developments. Stock-Like Attributes: Cryptocurrencies exhibit volatility and trading patterns like stocks, especially in shorter time frames. This includes responses to market news, investor sentiment, and economic...