Yale University financial experts have developed a system of factors to predict prices of major cryptocurrencies, according to Cointelegraph.The new research was completed by economist Aleh Tsyvinski and Yukun Liu, a Ph.D. candidate in the Department of Economics. They studied the behavior of Bitcoin, Ripple and Ethereum during the particular period of time.
One of the factors is a “strong time-series momentum effect.” Tsyvinski and Liu claim that if the price of Bitcoin grows over a week, it is possibly keep growing over the next week. The experts mentioned that a sharp increase of Bitcoin’s price causes higher demand in the market, which stimulates bigger investments.
The experts also noted the factor of investor attention, which shows a correlation between cryptocurrency prices and the number of posts and queries for cryptos on social media.