Predicting and Analyzing the Bitcoin's Price with the ARIMA Model

Abstract

Virtual currencies have become one of the most welcomed financial investment properties by investors, managers, and researchers. In this essay, we analyze the Bitcoin price from 2017 to 2023 and forecast the price of the Bitcoin. ARIMA model plays an important role in time series prediction, and many researchers choose to use this model to analyze and forecast historical time series. Therefore, this paper is based on the Autoregressive Integrated Moving Average Model (ARIMA) mode, by using the previous Bitcoin price to forecast the future price of Bitcoin. The outbreak of COVID-19 in late 2019 which then spread from China to the world has had a huge negative impact on the global economy. At the same time, owing to the impact of COVID-19 being significant, this paper will also analyze the influence of the pandemic’s influence on Bitcoin. The result shows that the epidemic has a great influence on it and reflect a different consequence of other industry. Investors and others should be cautious about investing in bitcoin.