Crypto data firm Nomics has announced on Wednesday the beta release of 7-day cryptoasset price predictions, utilising a machine learning model known as long short-term memory (LSTM). This means that it examines huge quantities of data upon which it learns to predict a price.
After acknowledging that the predictions are not investment advice, users can find here a predicted 7-day price, a predicted 7-day percentage change from the current price, and the mean 30-day error expressed as a percentage for each asset. Individual cryptoasset pages also come with the ability to track historical accuracy.
Let's take a look at what the AI sees in the future for the top 10 coins by market capitalisation not taking tether (USDT) into consideration, as it's a stablecoin, pegged to the USD.
Bitcoin, says the system, will go up 0.51% in a week, to a predicted price of USD 7,508. The mean 30-day error is 7.88%. However, at the same time, the system shows that BTC now (10:45 UTC) trades at USD 7,526, or more than its predicted price.
Meanwhile, Ethereum has a higher percentage in its cards and will go up 3.83% to the price of USD 193.35. The mean error here is 9.66%.
Tezos, the last of the top 10, is the winner among them all. Its price is predicted to appreciate 15.18% to USD 2.86, with the 30-day mean error of 11.74%.
Not only is the world of crypto still evolving, but the crypto price prediction is still developing, "ML-generated cryptoasset price predictions are uncharted territory" as Nomics says, the system is new, and it will require more learning with time. It remains to be seen how accurate the current predictions will be, and how much more precise will the AI become with time.
Meanwhile, BTC rallied on Thursday sharply, almost recovering all losses it suffered on Black Thursday in March. Furthermore, observing the on-chain fundamentals for the week, crypto market researcher Glassnode found a significant increase in activity on the Bitcoin network, with the numbers of transactions and of active entities rising, which they believe is expected given the upcoming mining reward halving and the revived retail interest in BTC. "This represents not only recovery to pre-crash levels, but also a significant increase in activity as compared to the start of 2020," says Glassnode.
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