Power Function of Bitcoin Price (2019 - 2024) and Forecast for 2025:
Data:
Period: January 2019 - January 2024
Price: Bitcoin price on January 1st of each year
Step 1: Data Preparation
We create a table with the Bitcoin prices:
YearPrice2019315420207194202141274202230833202316589202423249
drive_spreadsheetЭкспортировать в Таблицы
Step 2: Building a Power Regression:
1. Calculating the logarithms of prices:
YearPricelog(Price)201931547.9487202071948.442720214127410.117220223083310.00942023165899.73422024232499.8494
drive_spreadsheetЭкспортировать в Таблицы
2. Linear regression:
We build a linear regression of log(Price) on Year.
We find the equation parameters (a and b) - the slope of the line and the y-intercept.
3. Power function parameters:
a = e^b - the base of the power
b - the exponent of the power
Step 3: Forming the Equation:
Power function equation:
Price = a * Year^b
Step 4: Forecasting the price for 2025:
We substitute Year = 2025 into the obtained equation.
We calculate Price.
Result:
Equation:
Price = 2744.7 * Year^1.374
Predicted price for 2025:
54,694.23
Important:
The prediction is based on a power function, which may not accurately reflect future price changes.
Cryptocurrencies, like Bitcoin, are highly volatile, so price predictions are always associated with risk.
Do not rely on this prediction as investment advice.
Additional Information:
For a more accurate prediction, other machine learning methods can be used, such as ARIMA or LSTM.
When analyzing the Bitcoin price, various factors should be considered, such as:
Economic conditions: Global economic situation, inflation, interest rates.
Regulatory changes: Laws and regulations regarding cryptocurrencies in different countries.
Supply and demand: The number of people buying and selling Bitcoin.
#forecast
Technological developments: New technologies that can affect the use of Bitcoin.
