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Predictive Models

Definition

Predictive models are statistical or machine learning tools that forecast future outcomes based on historical data patterns. These algorithms analyze past trends, relationships, and variables to make informed estimations about probabilities or values of future events. They are trained on datasets to identify correlations and causal links, allowing for the projection of market movements, user behaviors, or system vulnerabilities. In digital asset markets, they assist in anticipating price fluctuations, liquidity shifts, and potential security incidents.