Papers › CryptoMamba: Leveraging State Space Models for Accurate Bitcoin Price Prediction

CryptoMamba: Leveraging State Space Models for Accurate Bitcoin Price Prediction

2 Jan 2025arXiv:2501.01010archive 2025-07-28

Mohammad Shahab Sepehri, Asal Mehradfar, Mahdi Soltanolkotabi, Salman Avestimehr

Predicting Bitcoin price remains a challenging problem due to the high volatility and complex non-linear dynamics of cryptocurrency markets. Traditional time-series models, such as ARIMA and GARCH, and recurrent neural networks, like LSTMs, have been widely applied to this task but struggle to capture the regime shifts and long-range dependencies inherent in the data. In this work, we propose CryptoMamba, a novel Mamba-based State Space Model (SSM) architecture designed to effectively capture long-range dependencies in financial time-series data. Our experiments show that CryptoMamba not only provides more accurate predictions but also offers enhanced generalizability across different market conditions, surpassing the limitations of previous models. Coupled with trading algorithms for real-world scenarios, CryptoMamba demonstrates its practical utility by translating accurate forecasts into financial outcomes. Our findings signal a huge advantage for SSMs in stock and cryptocurrency price forecasting tasks.

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