Cryptocurrency price prediction remains a challenging problem due to the highly volatile nature of digital asset markets. This study introduces a Hybrid Quantum-Classical Neural Network (HQCNN) for cryptocurrency price forecasting, leveraging quantum feature encoding and extraction with deep learning architectures. The proposed model utilizes Quantum Convolutional Neural Networks (QCNN) to enhance feature representations, which are then processed by classical deep learning models such as Long Short-Term Memory (LSTM) and Transformer networks. Experimental results on historical cryptocurrency data demonstrate that HQCNN outperforms state-of-the-art models. The proposed model achieves a mean absolute error (MAE) of 0.023 and a root mean squared error (RMSE) of 0.036, surpassing traditional deep learning methods such as LSTM (MAE: 0.040, RMSE: 0.056) and Transformerbased models (MAE: 0.035, RMSE: 0.050). Ablation studies confirm the importance of quantum feature encoding, as removing it degrades performance by up to $\mathbf{3 8. 2 \%}$. Additionally, HQCNN reduces inference time to 7 milliseconds, making it suitable for real-time trading applications. Despite its advantages, HQCNN faces challenges related to quantum hardware constraints, training overhead, and interpretability in financial decision-making. Future work will focus on deploying the model on real quantum processors, integrating reinforcement learning for market adaptability, and enhancing interpretability with quantum explainability techniques.
Cryptocurrency price prediction remains a challenging problem due to the highly volatile nature of digital asset markets. This study introduces a Hybrid Quantum-Classical Neural Network (HQCNN) for cryptocurrency price forecasting, leveraging quantum feature encoding and extraction with deep learning architectures. The proposed model utilizes Quantum Convolutional Neural Networks (QCNN) to enhance feature representations, which are then processed by classical deep learning models such as Long Short-Term Memory (LSTM) and Transformer networks. Experimental results on historical cryptocurrency data demonstrate that HQCNN outperforms state-of-the-art models. The proposed model achieves a mean absolute error (MAE) of 0.023 and a root mean squared error (RMSE) of 0.036, surpassing traditional deep learning methods such as LSTM (MAE: 0.040, RMSE: 0.056) and Transformerbased models (MAE: 0.035, RMSE: 0.050). Ablation studies confirm the importance of quantum feature encoding, as removing it degrades performance by up to 38.2%. Additionally, HQCNN reduces inference time to 7 milliseconds, making it suitable for real-time trading applications. Despite its advantages, HQCNN faces challenges related to quantum hardware constraints, training overhead, and interpretability in financial decision-making. Future work will focus on deploying the model on real quantum processors, integrating reinforcement learning for market adaptability, and enhancing interpretability with quantum explainability techniques.
Cryptocurrency markets are characterized by high volatility and nonlinear dynamics, making accurate analysis and forecasting challenging. This study proposes a novel quantum computing-based model, CryptoQNet, to address these challenges by leveraging Quantum Feature Maps, Variational Quantum Circuits, and Quantum Recurrent Neural Networks. CryptoQNet outperforms classical models such as LSTMs and GRUs, achieving a Mean Absolute Error (MAE) of 0.021 and Root Mean Squared Error (RMSE) of 0.028 for Bitcoin price predictions, compared to 0.038 and 0.045 by LSTMs. For Ethereum, the model achieved an MAE of 0.018 and RMSE of 0.025, demonstrating its robustness in modeling complex market trends. Additionally, CryptoQNet significantly reduced Mean Absolute Percentage Error (MAPE) for volatility prediction, achieving 3.2% for Bitcoin and 3.6% for Ethereum, compared to over 5% by classical models. The model also provides enhanced interpretability, identifying price and volume as key factors influencing market trends. While training time is higher due to quantum computations, inference efficiency and accuracy make CryptoQNet a promising tool for financial forecasting. This study highlights the transformative potential of quantum computing in financial market analysis and offers directions for future research in hybrid quantum-classical approaches.
Cryptocurrency markets are known for their high volatility and complex price dynamics, which make accurate prediction and analysis extremely challenging. Traditional financial forecasting models and classical machine learning algorithms often struggle to capture the nonlinear and rapidly changing patterns present in cryptocurrency datasets. In recent years, advancements in artificial intelligence and quantum computing have opened new possibilities for analyzing complex financial data and improving prediction accuracy.This study proposes a quantum computing–based framework for cryptocurrency market prediction by integrating quantum machine learning techniques with financial time-series analysis. The proposed model utilizes quantum computing concepts such as quantum feature mapping, variational quantum circuits, and quantum recurrent neural networks to analyze cryptocurrency market data. Historical datasets containing information about cryptocurrency prices, trading volume, and market capitalization are used to train and evaluate the model.The proposed system aims to identify hidden patterns in cryptocurrency market trends and generate accurate predictions for future price movements and market volatility. The performance of the quantum-based model is compared with classical deep learning models such as Long Short-Term Memory (LSTM) and Gated Recurrent Unit (GRU) networks. Experimental results indicate that the quantum machine learning approach achieves improved prediction accuracy and lower forecasting error compared to traditional deep learning models.By leveraging the computational advantages of quantum computing, the proposed framework provides a powerful approach for analyzing highly complex financial datasets. The results demonstrate that quantum machine learning techniques have the potential to significantly enhance cryptocurrency market analysis, enabling more accurate forecasting and better decision-making for investors and financial analysts.
The stock markets have become a popular topic within machine learning (ML) communities, with one particular application being stock price prediction. However, accurately predicting the stock market is a challenging task due to the various factors within financial markets. With the introduction of ML, prediction techniques have become more efficient but computationally demanding for classical computers. Given the rise of quantum computing (QC), which holds great promise for being exponentially faster than current classical computers, it is natural to explore ML within the QC domain. In this study, we leverage a hybrid quantum-classical ML approach to predict a company's stock price. We integrate classical long short-term memory (LSTM) with QC, resulting in a new variant called QLSTM. We initially validate the proposed QLSTM model by leveraging an IBM quantum simulator running on a classical computer, after which we conduct predictions using an IBM real quantum computer. Thereafter, we evaluate the performance of our model using the root mean square error (RMSE) and prediction accuracy. Additionally, we perform a comparative analysis, evaluating the prediction performance of the QLSTM model against several other classical models. Further, we explore the impacts of hyperparameters on the QLSTM model to determine the best configuration. Our experimental results demonstrate that while the classical LSTM model achieved an RMSE of 0.0693 and a prediction accuracy of 0.8815, the QLSTM model exhibited superior performance, achieving values of 0.0602 and 0.9736, respectively. Furthermore, the QLSTM outperformed other classical models in both metrics.
Stock market forecasting remains one of the most computationally demanding tasks in financial engineering, requiring sophisticated models capable of processing nonlinear patterns, high-frequency volatility, and large volumes of time-series data. Recent advancements in quantum computing offer the potential to surpass classical machine learning (ML) by leveraging principles such as superposition and entanglement to accelerate learning and optimization. This paper conducts a comprehensive comparison between quantum machine learning (QML) models and classical deep learning architectures for stock price prediction, emphasizing the technological improvements and optimization of computational methods. Our analysis integrates insights from prior studies, including the application of quantum-enhanced Gramian Angular Fields with CNNs [2], shallow parameterized quantum circuits for market indicators [4], and hybrid quantum-classical algorithms tailored to finance [1]. Experimental evaluation (using IBM Qiskit's quantum simulators and real hardware) demonstrates competitive performance of quantum neural networks (QNNs) against state-of-the-art recurrent neural networks (RNNs) and long short-term memory (LSTM) architectures [3]. Across AAPL/MSFT and short horizons, compact QNNs match strong LSTM baselines while using an order of magnitude fewer parameters, and—critically—transfer from calibrated simulators to IBM hardware with marginal degradation after mitigation. This device-aware training/evaluation loop exemplifies a deployable path for financial QML under realistic noise and resource constraints and motivates standardized, time-series-aware testing for the community. Results highlight the engineering value of quantum acceleration in feature encoding, the research novelty of hybrid ensemble strategies, and the future scope of benchmarking across leading quantum computing machines such as IBM, Google Sycamore, Rigetti, IonQ, and Xanadu.
Prediction of stock price remains a challenging task because financial markets are dynamic and often non-linear, unpredictable patterns. To deal with such unpredictable data, the architecture that’s created must identify both time based trends and hidden patterns in data. In this study, we explore a hybrid modelling approach by combining both the classical deep learning techniques with quantum computing principles. Specifically, a Long Short-Term Memory (LSTM) is combined with a Quantum Neural Network (QNN) to understand the benefits of using quantum in time series forecasting. Rather than depending on a single quantum configuration, multiple feature maps and ansatz circuit designs were evaluated to identify the most suitable arrangement for the QLSTM model. Resultant framework blends ideas from both classical computing and quantum approaches to improve how we predict patterns over time in real-life scenarios.
Time-series forecasting is vital across sectors such as finance, energy, and environmental science, where accurate future predictions drive informed decision-making. Traditional statistical methods and deep learning models like LSTM and Transformers, while effective, often struggle with high-dimensional data and long-term dependencies. In this paper, we propose a hybrid quantum-classical model that utilizes Parameterized Quantum Circuits (PQCs) to capture complex temporal patterns in multivariate time-series data. Our architecture integrates a classical encoder, a quantum variational processor, and a classical decoder, trained end-to-end using gradient-based optimization. Experiments conducted on benchmark datasets—electricity load, stock prices, and weather forecasting—demonstrate that the hybrid model consistently outperforms classical baselines in terms of Mean Squared Error (MSE), Mean Absolute Error (MAE), and R² score. Robustness analysis confirms the model’s resilience to moderate quantum noise, while an ablation study highlights the performance gain from quantum components. This work showcases the potential of hybrid quantum-classical approaches on Noisy Intermediate-Scale Quantum (NISQ) devices and lays a foundation for scalable, real-world quantum machine learning applications.