A new grey system approach to forecast closing price of Bitcoin, Bionic, Cardano, Dogecoin, Ethereum, XRP Cryptocurrencies

Abstract

The current study uses the grey forecasting model, EGM (1, 1, α, θ), a generalized form of the classical, even form of grey forecasting approach, to forecast the closing price of Bitcoin (BTC), Bionic (BNC), Cardano (ADA), Dogecoin (DOGE), Ethereum (ETH), XRP (XRP) of cryptocurrencies based on the data from September 19, 2021, to September 29, 2021. The forecast was generated for September 30, 2021–October 07, 2021. Study revealed that the generalized model’s forecast accuracy is generally better than that of the classical model. The results are also compared with Linear Regression and Exponential Regression. This superiority results from using real past data in long-term forecasting, while the iterative forecasting approach uses the predicted values. Since forecast values are important in guiding future investments, decision-makers must consider various forecasting methods and select the best forecast performance after analyzing the comparative performance. © 2022, The Author(s), under exclusive licence to Springer Nature B.V.