A team of researchers from the International Hellenic University and Democritus University of Thrace in Greece conducted a study on the application of the “efficient market hypothesis” (EMH) to bitcoin trading. The EMH theory suggests that an asset’s share price reflects its fair market value and all relevant market information, making it impossible to outperform the market through timing or intuition. The researchers developed four artificial intelligence models and found that the optimal model was able to outperform baseline returns by up to 297%. However, it is important to note that the study was based on historical data and simulated portfolio management. While the results provide empirical evidence for the efficacy of EMH in cryptocurrency trading, it may not change the opinions of those who are skeptical of the theory.
Summary:
– Researchers from Greek universities tested the efficient market hypothesis (EMH) in bitcoin trading.
– EMH suggests that an asset’s share price reflects its fair market value and all relevant market information.
– The researchers developed four AI models and found that the optimal model outperformed baseline returns by up to 297%.
– However, the study was based on historical data and simulated portfolio management.
– The results provide empirical evidence for the efficacy of EMH in cryptocurrency trading, but may not convince skeptics.
