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Modeling the price of Bitcoin with fractional Brownian motion: a Monte Carlo approach. (arXiv:1707.03746v1 [q-fin.CP])

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The long-term dependence of Bitcoin (BTC), manifesting itself through a Hurst exponent $H>0.5$, is exploited in order to predict future BTC/USD price. A Monte Carlo simulation with $10^5$ fractional Brownian motion realisations is performed as extensions on historical data. The accuracy of statistical inferences is 20\%. The most probable Bitcoin price in 180 days is 4537 USD.


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