Fundamental Indicators / Factors / Analysis
slavakurilyak opened this issue · comments
Goal
As a developer, I want to determine fundamental factors of cryptocurrency prices, so that I can better understand how to predict future prices.
Consider
- Consider using
Total Bitcoins (BCHAIN/TOTBC)
, see relevant dataset, as a measure of the Bitcoin supply - Consider using
Bitcoin Number of Transactions (BCHAIN/NTRAN)
, see relevant dataset, as a measure of the Bitcoin demand
Inspiration
- Work completed by @Rachnog on feature calculators for machine learning
- Research by Kristoufek (2015) shows that:
- "Fundamental factors—usage in trade, money supply and price level—play a role in Bitcoin price over the long term." Note, "trade volume and trade transactions are used as measures of usage."
- "Both hash rate... and difficulty... are positively correlated with the Bitcoin price in the long-term."
- "Searches on both engines (top) are positively correlated with the Bitcoin price in the long run."