Anomaly Detection on Bitcoin Values

Abstract

Bitcoin has received a lot of attention from investors, researchers, regulators, and the media. It is a known fact that the Bitcoin price usually fluctuates greatly. However, not enough scientific research has been done on these fluctuations. In this study, long short-term memory (LSTM) modeling from Recurrent Neural Networks, which is one of the deep learning methods, was applied on Bitcoin values. As a result of this application, anomaly detection was carried out in the values from the data set. With the LSTM network, a time-dependent representation of Bitcoin price can be captured, and anomalies can be selected. The factors that play a role in the formation of the model to be applied in the detection of anomalies with the experimental results were evaluated.