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Main Authors: Hong, Kairan, Gan, Jinling, Tian, Qiushi, Guo, Yanglinxuan, Guo, Rui, Li, Runnan
Format: Preprint
Published: 2025
Subjects:
Online Access:https://arxiv.org/abs/2510.08268
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author Hong, Kairan
Gan, Jinling
Tian, Qiushi
Guo, Yanglinxuan
Guo, Rui
Li, Runnan
author_facet Hong, Kairan
Gan, Jinling
Tian, Qiushi
Guo, Yanglinxuan
Guo, Rui
Li, Runnan
contents Cryptocurrency markets present unique prediction challenges due to their extreme volatility, 24/7 operation, and hypersensitivity to news events, with existing approaches suffering from key information extraction and poor sideways market detection critical for risk management. We introduce a theoretically-grounded multi-agent cryptocurrency trend prediction framework that advances the state-of-the-art through three key innovations: (1) an information-preserving news analysis system with formal theoretical guarantees that systematically quantifies market impact, regulatory implications, volume dynamics, risk assessment, technical correlation, and temporal effects using large language models; (2) an adaptive volatility-conditional fusion mechanism with proven optimal properties that dynamically combines news sentiment and technical indicators based on market regime detection; (3) a distributed multi-agent coordination architecture with low communication complexity enabling real-time processing of heterogeneous data streams. Comprehensive experimental evaluation on Bitcoin across three prediction horizons demonstrates statistically significant improvements over state-of-the-art natural language processing baseline, establishing a new paradigm for financial machine learning with broad implications for quantitative trading and risk management systems.
format Preprint
id arxiv_https___arxiv_org_abs_2510_08268
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Multi-Agent Analysis of Off-Exchange Public Information for Cryptocurrency Market Trend Prediction
Hong, Kairan
Gan, Jinling
Tian, Qiushi
Guo, Yanglinxuan
Guo, Rui
Li, Runnan
Computational Finance
Cryptocurrency markets present unique prediction challenges due to their extreme volatility, 24/7 operation, and hypersensitivity to news events, with existing approaches suffering from key information extraction and poor sideways market detection critical for risk management. We introduce a theoretically-grounded multi-agent cryptocurrency trend prediction framework that advances the state-of-the-art through three key innovations: (1) an information-preserving news analysis system with formal theoretical guarantees that systematically quantifies market impact, regulatory implications, volume dynamics, risk assessment, technical correlation, and temporal effects using large language models; (2) an adaptive volatility-conditional fusion mechanism with proven optimal properties that dynamically combines news sentiment and technical indicators based on market regime detection; (3) a distributed multi-agent coordination architecture with low communication complexity enabling real-time processing of heterogeneous data streams. Comprehensive experimental evaluation on Bitcoin across three prediction horizons demonstrates statistically significant improvements over state-of-the-art natural language processing baseline, establishing a new paradigm for financial machine learning with broad implications for quantitative trading and risk management systems.
title Multi-Agent Analysis of Off-Exchange Public Information for Cryptocurrency Market Trend Prediction
topic Computational Finance
url https://arxiv.org/abs/2510.08268