MATRIK : Jurnal Manajemen, Teknik Informatika, dan Rekayasa Komputer
Vol. 23 No. 2 (2024)

Comparing Long Short-Term Memory and Random Forest Accuracy for Bitcoin Price Forecasting

Ula, Munirul (Unknown)
Ilhadi, Veri (Unknown)
Sidek, Zailani Mohamed (Unknown)



Article Info

Publish Date
30 Jan 2024

Abstract

Bitcoin’s daily value fluctuations are very dynamic. Understanding its rapid and intricate price movements demands advanced techniques for processing complex data. This research aims to compare the accuracy of two machine learning methods, Random Forest (RF) and Long Short-Term Memory (LSTM), in predicting Bitcoin price. This research employs RF and LSTM algorithms to forecast Bitcoin prices using a two-year Yahoo Finance dataset. The evaluation metrics used were accuracy based on Mean Absolute Percentage Error (MAPE) and computational power (CPU-Z). As a result of this research, the LSTM model demonstrates higher accuracy compared to the RF model. MAPE reveals LSTM’s precision of 99.8% and RF’s accuracy of 90.1%. Regarding computational time and resources, RF shows slightly better performance than LSTM. The visual comparison further emphasizes LSTM’s better performance in predicting Bitcoin prices, highlighting its potential for informed decision-making in cryptocurrency trading. This research contributes valuable insights into the effectiveness, strengths, and weaknesses of LSTM and RF models in predicting cryptocurrency trends.

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Journal Info

Abbrev

matrik

Publisher

Subject

Computer Science & IT

Description

MATRIK adalah salah satu Jurnal Ilmiah yang terdapat di Universitas Bumigora Mataram (eks STMIK Bumigora Mataram) yang dikelola dibawah Lembaga Penelitian dan Pengabadian kepada Masyarakat (LPPM). Jurnal ini bertujuan untuk memberikan wadah atau sarana publikasi bagi para dosen, peneliti dan ...