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The academic research team at International Hellenic University and Democritus University of Thrace recently published a paper supporting Bitcoin's Efficient Market Hypothesis (EMH), saying that the model generates returns that are nearly 300% higher than the HODL strategy. The study was limited to observations of the Bitcoin market, and they stated that the efficient market hypothesis could be applied to cryptocurrency trading as an alternative to the standard "buy and hold" or long-term holding methods to avoid market volatility.
To test this, the researchers developed four different AI models, trained using multiple datasets. After training and testing, they chose a model that was optimized for "beating the market" and holding strategies. According to the team, the best model has a 297% higher return than holding alone. This goes some way to proving that the efficient market hypothesis is a useful tool for Bitcoin and cryptocurrency traders.