Naive Bayes Algorithm to Forecast and Analyze Cryptocurrency Trends

Naive Bayes Algorithm selected to build the prediction platform and analyze cryptocurrency trends

For a long time, there have been predictions happening in the financial market, such as the stock market and bond market. Cryptocurrency market has been on rise since the past few years but predictions about the market trend followed by these currencies is still in its nascent state. This study is based on the relationship between current sentiments of public opinion and price variation in this market, and is concerned with predicting whether the cryptocurrency market will trend upward or downward using sentiment analysis, which is one among the various applications of natural-language processing. Bitcoin is the selected cryptocurrency. A platform to predict the future market trend of cryptocurrency market is built using Naïve Bayes Algorithm, in Python language. The validity of the model is tested by finding correlation between sentiment polarity of tweets and with price values of respective time periods. An accuracy of 89.86% is achieved by this model. This article features how Naive Bayes algorithm forecasts and analyze cryptocurrency trends.

The Naive Bayes Algorithm selected to build the prediction platform and analyze cryptocurrency trends in this work is the Naïve Bayes Classification model. Training the classifier using a dataset is an important aspect of supervised learning techniques. A part of the data collected is set apart as a training dataset and the other part is the testing dataset. This training data is given as input to the classifier to make it easier for the prediction of unknown data by this classifier.

A portion of the dataset kept apart as testing data is given as input to the classifier model. When an unknown dataset is given, the classifier will predict accurately if training and testing of data were done properly. In this study, the classification process is done by building a Naïve Bayes classifier that belongs to the family of "probabilistic classifiers".

The Naive Bayes classification technique is based on Bayesian theorem and it is particularly suitable in the cases where dimensionality of the inputs is high. Even if the technique is simple, Naive Bayes can sometimes outperform more sophisticated classification methods. Naive Bayes algorithm mainly works for binary or two-class and multi-class classification problems.

Here are some of the cryptocurrency trends and predictions for 2023

Funding Will Be More Focused

Experts predict that crypto funding from venture capitalists is going to decline in 2023, and instead will be more focused on projects likely to succeed. This is actually going to be great for the industry, though, and why the crypto winter is over in 2023.

FightOut is one of the newest projects that at some point could attract some venture capital funding because of its position as a leader in the Move-to-Earn (M2E) segment. Users can track all of their progress toward fitness goals, and not just steps taken with FightOut. This is why it's standing out in the M2E class.

More Focus on Green Projects

Sustainable projects are being created in crypto, too, which is part of the reason why experts predict the crypto winter is over in 2023. C+Charge is one of the projects leading the way in this sector too.

It's providing a P2P payment system for EV charging stations that will allow users to pay for EV charging right from their individual electronic wallets. This is going to become even more prevalent as EV usage increases in the coming year. So, if you want to get in on this great new revolutionary project, invest now, as C+Charge is still in early Presale stages.

Higher Focus on Quality

With so many crypto projects focusing on attracting the right users, the crypto winter will end in 2023 as more people use it. This is what Calvaria, a new P2E battle card game is doing. By having a free version of its game, users can try it out and get educated about how crypto works in a hands-on way.

With this approach, Calvaria is attracting a highly-engaged user base that is more likely to keep coming back for more. That's why it's soaring through presale stages. It's almost out of presale, in fact, so hurry and buy now before the price soars even more.