Myths and Realities About Cryptocurrency Price Predictions

Predicting the price of assets is a never ending obsession in capital markets and the crypto space is not an exception. Since the early days of Bitcoin, there have been many attempts to create predictive models that forecast the price of crypto-assets. Unfortunately, most of those attempts haven’t gone past some fancy blog posts of research papers and we are still waiting to see major applications relying on predictive models for crypto assets. Being a completely digital asset class, crypto assets generate a rich digital footprint that seems logical that can be used to predict their behavior. Additionally, we are currently living in the golden era of machine learning in which there is no lack of platforms and frameworks with sophisticated predictive capabilities available to mainstream developers. However, the fact of the matter is that predicting financial markets is brutally difficult and some of those challenges are accentuated in the crypto space. At IntoTheBlock, we have been doing a lot of work in predictive models for crypto assets and have been facing some unexpected and yet fascinating challenges. Today, I would like to provide different perspectives about the opportunities and challenges of predictive models in the crypto space.

The crypto market has some very unique characteristics but many of the challenges related to its…