Bi-LSTM

FinBERT-BiLSTM: A Deep Learning Model for Predicting Volatile Cryptocurrency Market Prices Using Market Sentiment Dynamics ArXiv ID: 2411.12748 “View on arXiv” Authors: Unknown Abstract Time series forecasting is a key tool in financial markets, helping to predict asset prices and guide investment decisions. In highly volatile markets, such as cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), forecasting becomes more difficult due to extreme price fluctuations driven by market sentiment, technological changes, and regulatory shifts. Traditionally, forecasting relied on statistical methods, but as markets became more complex, deep learning models like LSTM, Bi-LSTM, and the newer FinBERT-LSTM emerged to capture intricate patterns. Building upon recent advancements and addressing the volatility inherent in cryptocurrency markets, we propose a hybrid model that combines Bidirectional Long Short-Term Memory (Bi-LSTM) networks with FinBERT to enhance forecasting accuracy for these assets. This approach fills a key gap in forecasting volatile financial markets by blending advanced time series models with sentiment analysis, offering valuable insights for investors and analysts navigating unpredictable markets. ...

EUR-USD Exchange Rate Forecasting Based on Information Fusion with Large Language Models and Deep Learning Methods ArXiv ID: 2408.13214 “View on arXiv” Authors: Unknown Abstract Accurate forecasting of the EUR/USD exchange rate is crucial for investors, businesses, and policymakers. This paper proposes a novel framework, IUS, that integrates unstructured textual data from news and analysis with structured data on exchange rates and financial indicators to enhance exchange rate prediction. The IUS framework employs large language models for sentiment polarity scoring and exchange rate movement classification of texts. These textual features are combined with quantitative features and input into a Causality-Driven Feature Generator. An Optuna-optimized Bi-LSTM model is then used to forecast the EUR/USD exchange rate. Experiments demonstrate that the proposed method outperforms benchmark models, reducing MAE by 10.69% and RMSE by 9.56% compared to the best performing baseline. Results also show the benefits of data fusion, with the combination of unstructured and structured data yielding higher accuracy than structured data alone. Furthermore, feature selection using the top 12 important quantitative features combined with the textual features proves most effective. The proposed IUS framework and Optuna-Bi-LSTM model provide a powerful new approach for exchange rate forecasting through multi-source data integration. ...