Best IB Resources Website
Sell your IB Docs (IA, EE, TOK, etc.) for $10 a pop!
Best IB Resources Website
Nail IB's App Icon
Mathematics AI SL
Mathematics AI SL
Sample Internal Assessment
Sample Internal Assessment

Skip to

Table of content
Rationale
Aim
Research question
Introduction
Data collection

Calculation of R2

Conclusion
Bibliography

To what extent is there a Correlation between Price of Bit Coin over last twelve months

To what extent is there a Correlation between Price of Bit Coin over last twelve months Reading Time
11 mins Read
To what extent is there a Correlation between Price of Bit Coin over last twelve months Word Count
2,066 Words
Candidate Name: N/A
Candidate Number: N/A
Session: N/A
Personal Code: N/A
Word count: 2,066

Table of content

Rationale

Recently, while surfing internet on my mobile, I have come across advertisements about bidding. I initially ignored them just like other advertisements but a few days back I came across few reviews which quite intrigued me into knowing about it more. It was about an app named Olympus Trade.

 

I was not at all sure whether it was genuine. It showcased interesting deals which grew the interest in me. As a teenager, I wanted to earn my own pocket money. This thought pushed me into gathering information about this app.

 

Once I decided to go along with it, the fear that it could be a fraud, persisted. As a result, I was determined that I would not invest a single penny without finding about it properly.

 

I went on to search all sources available. I came across the term 'Bitcoin'. My eyes popped out knowing the INR value of one bitcoin. Reading more about it, I went through all reviews, terms and conditions and much more.

 

After gathering enough information, I looked for its status in the last twelve months. It was very important for me to know how the bitcoin value changed over time and what the value was for a year. I looked at all possible sources but could not get an answer.

 

Unable to get a proper satisfactory answer, I decided to find it out myself before coming to a conclusion. So in this IA, I have tried to find the relationship between the price of bitcoin and time over a span of last twelve months.

Aim

The main motive of this IA is to find a correlation, if exist, between the price of Bitcoin and time over a span of 12 months. To make to study more accurate and detailed, the span of twelve months will be divided into four groups of 3 months each.

Research question

What is the relationship between the price of Bitcoin and time over a span of last twelve months?

Introduction

Bitcoin is a cryptocurrency which is currently very popular for purchasing and selling shares. It is a form of marketing which is used by several mobile apps. Customers usually buy a share of a bitcoin and sells accordingly. Based upon the price of the bitcoin at that moment, the consumer earns or losses his money. However, Bitcoin is often considered to be illegal in many countries as it is used in transactions executing criminal activities.

Data collection

The price of the Bitcoin over last one year has been collected from a statistical data present in an authentic website. The data is furnished below:

Date
Price of Bitcoin (in USD)
01/11/19
9131.41063
02/11/19
9197.63234
03/11/19
9290.8966
04/11/19
9202.41545
05/11/19
9369.62808
06/11/19
9326.59962
07/11/19
9335.7524
08/11/19
9226.48582
09/11/19
8794.35864
10/11/19
8798.04205
11/11/19
9081.18688
12/11/19
8711.53434
13/11/19
8760.89272
14/11/19
8749.52059
15/11/19
8656.97092
16/11/19
8500.64356
17/11/19
8469.2609
18/11/19
8537.33965
19/11/19
8205.80637
20/11/19
8118.48854
21/11/19
8074.84317
22/11/19
7612.74057
23/11/19
7262.11053
24/11/19
7303.40576
25/11/19
7041.73294
26/11/19
7211.86181
27/11/19
7141.06945
28/11/19
7523.48067
29/11/19
7390.20747
30/11/19
7729.26594
01/12/19
7542.23561
02/12/19
7381.96301
03/12/19
7333.43293
04/12/19
7315.36776
05/12/19
7213.73376
06/12/19
7398.78705
07/12/19
7511.88058
08/12/19
7532.12351
09/12/19
7550.2392
10/12/19
7333.09604
11/12/19
7239.76258
12/12/19
7198.06668
13/12/19
7190.27237
14/12/19
7238.87432
15/12/19
7087.02499
16/12/19
7112.73148
17/12/19
6883.49639
18/12/19
6584.02884
19/12/19
7424.0154
20/12/19
7147.56832
21/12/19
7139.93337
22/12/19
7286.33508
23/12/19
7236.9862
24/12/19
7166.17238
25/12/19
7235.62665
26/12/19
7212.8094
27/12/19
7183.70654
28/12/19
7227.29371
29/12/19
7311.56064
30/12/19
7385.46485
31/12/19
7251.27679
01/01/20
7179.95782
02/01/20
7174.74401
03/01/20
6955.48758
04/01/20
7291.21951
05/01/20
7337.63667
06/01/20
7347.43326
07/01/20
7713.86075
08/01/20
8039.6037
09/01/20
8067.60637
10/01/20
7808.70136
11/01/20
8087.45289
12/01/20
8078.99353
13/01/20
8149.31372
14/01/20
8116.96101
15/01/20
8735.14244
16/01/20
8843.67573
17/01/20
8711.63758
18/01/20
8925.29903
19/01/20
8939.8643
20/01/20
8638.18144
21/01/20
8652.68376
22/01/20
8708.78601
23/01/20
8635.07436
24/01/20
8384.08878
25/01/20
8451.2323
26/01/20
8347.56751
27/01/20
8562.30747
28/01/20
8881.96239
29/01/20
9131.11499
30/01/20
9320.97841
31/01/20
9545.07796

Figure 1 - Table On Price Of Bitcoin From 1st November 2019 to 31st January 2020

Date
Price of Bitcoin (in USD)
01/02/20
9388.88075
02/02/20
9363.19338
03/02/20
9385.26039
04/02/20
9269.70703
05/02/20
9177.89464
06/02/20
9625.45664
07/02/20
9681.37741
08/02/20
9795.34407
09/02/20
9927.77826
10/02/20
10132.7065
11/02/20
9838.90002
12/02/20
10236.6351
13/02/20
10364.9263
14/02/20
10218.0997
15/02/20
10367.528
16/02/20
9926.35369
17/02/20
9876.23496
18/02/20
9636.62409
19/02/20
10189.996
20/02/20
9701.03719
21/02/20
9631.48495
22/02/20
9670.85865
23/02/20
9689.08674
24/02/20
9919.55145
25/02/20
9640.46951
26/02/20
9392.86963
27/02/20
8787.97836
28/02/20
8784.99535
29/02/20
8778.47051
01/03/20
8639.59142
02/03/20
8548.94832
03/03/20
8923.0444
04/03/20
8791.11206
05/03/20
8756.96106
06/03/20
9078.57878
07/03/20
9126.63682
08/03/20
8925.21349
09/03/20
8166.31389
10/03/20
7875.75088
11/03/20
7959.22827
12/03/20
7955.30628
13/03/20
5800.2089
14/03/20
5672.6812
15/03/20
5304.14995
16/03/20
5355.18737
17/03/20
4944.70234
18/03/20
5465.58259
19/03/20
5363.82285
20/03/20
6301.0634
21/03/20
6185.27984
22/03/20
6187.05375
23/03/20
5884.34013
24/03/20
6455.45469
25/03/20
6784.31801
26/03/20
6706.98509
27/03/20
6721.49539
28/03/20
6682.78005
29/03/20
6229.48834
30/03/20
5922.48984
31/03/20
6483.73945
01/04/20
6446.42135
02/04/20
6537.33646
03/04/20
6850.55871
04/04/20
6776.37009
05/04/20
6855.93326
06/04/20
6805.36229
07/04/20
7278.24397
08/04/20
7175.66748
09/04/20
7367.2934
10/04/20
7321.81661
11/04/20
6866.39819
12/04/20
6873.8485
13/04/20
7043.43886
14/04/20
6889.86377
15/04/20
6887.55491
16/04/20
6718.79995
17/04/20
7166.58282
18/04/20
7065.08239
19/04/20
7277.14059
20/04/20
7185.8703
21/04/20
6856.14643
22/04/20
6904.47577
23/04/20
7118.38875
24/04/20
7562.03283
25/04/20
7497.86176
26/04/20
7542.3034
27/04/20
7624.85379
28/04/20
7776.50754
29/04/20
7761.75878
30/04/20
8773.10649

Figure 2 - Table On Price Of Bitcoin From 1st February 2020 To 30th April 2020

Date
Price of Bitcoin (in USD)
01/05/20
8767.67262
02/05/20
8853.77448
03/05/20
8963.05756
04/05/20
8904.71382
05/05/20
8887.50589
06/05/20
8978.28359
07/05/20
9371.68427
08/05/20
9900.67887
09/05/20
9917.24841
10/05/20
9617.51819
11/05/20
8786.65518
12/05/20
8608.12525
13/05/20
8815.23124
14/05/20
9330.98648
15/05/20
9757.29659
16/05/20
9362.63556
17/05/20
9418.91855
18/05/20
9684.70196
19/05/20
9723.68015
20/05/20
9719.48085
21/05/20
9540.88657
22/05/20
9141.15064
23/05/20
9192.84514
24/05/20
9220.07589
25/05/20
9048.71512
26/05/20
8905.7816
27/05/20
8835.72722
28/05/20
9112.97918
29/05/20
9507.52466
30/05/20
9425.28187
31/05/20
9688.32439
01/06/20
9427.67008
02/06/20
10268.582
03/06/20
9516.13544
04/06/20
9667.06075
05/06/20
9811.36709
06/06/20
9659.6613
07/06/20
9677.05099
08/06/20
9737.45856
09/06/20
9791.9279
10/06/20
9786.14202
11/06/20
9874.96705
12/06/20
9260.83264
13/06/20
9464.2281
14/06/20
9458.65975
15/06/20
9351.95373
16/06/20
9441.769
17/06/20
9510.66064
18/06/20
9457.62707
19/06/20
9398.64209
20/06/20
9279.76077
21/06/20
9353.0782
22/06/20
9289.10449
23/06/20
9680.94713
24/06/20
9609.68025
25/06/20
9311.13632
26/06/20
9252.63337
27/06/20
9171.73209
28/06/20
9022.15377
29/06/20
9101.85006
30/06/20
9188.06138
01/07/20
9148.44486
02/07/20
9236.31677
03/07/20
9097.79737
04/07/20
9094.32456
05/07/20
9124.65353
06/07/20
9055.46448
07/07/20
9278.80564
08/07/20
9244.41581
09/07/20
9471.75997
10/07/20
9236.14325
11/07/20
9243.17526
12/07/20
9229.85975
13/07/20
9286.73704
14/07/20
9238.99375
15/07/20
9260.47098
16/07/20
9211.02643
17/07/20
9133.77783
18/07/20
9160.41059
19/07/20
9176.68639
20/07/20
9190.27153
21/07/20
9172.58833
22/07/20
9395.06445
23/07/20
9530.79089
24/07/20
9617.37786
25/07/20
9568.97473
26/07/20
9708.94914
27/07/20
9938.95122
28/07/20
11187.7797
29/07/20
10939.6701
30/07/20
11284.459
31/07/20
11118.9184

Figure 3 - Table On Price Of Bitcoin From 1st May 2020 To 31st July 2020

Date
Price of Bitcoin (in USD)
01/08/20
11373.3173
02/08/20
11766.7483
03/08/20
11139.0984
04/08/20
11261.8063
05/08/20
11228.0263
06/08/20
11653.4076
07/08/20
11796.8174
08/08/20
11639.9354
09/08/20
11744.9121
10/08/20
11673.1232
11/08/20
11832.2273
12/08/20
11340.5823
13/08/20
11549.5463
14/08/20
11752.1687
15/08/20
11783.2834
16/08/20
11895.6269
17/08/20
11896.9472
18/08/20
12399.1119
19/08/20
12071.7389
20/08/20
11749.8295
21/08/20
11833.8973
22/08/20
11583.1389
23/08/20
11674.6244
24/08/20
11666.4101
25/08/20
11744.0127
26/08/20
11378.726
27/08/20
11458.8226
28/08/20
11302.121
29/08/20
11482.2257
30/08/20
11515.0444
31/08/20
11657.0039
01/09/20
11678.3733
02/09/20
11964.2087
03/09/20
11427.7026
04/09/20
10712.9206
05/09/20
10563.8969
06/09/20
10042.8549
07/09/20
10207.605
08/09/20
1038.17761
09/09/20
10043.1964
10/09/20
10268.4609
11/09/20
10341.016
12/09/20
10380.5396
13/09/20
10436.3654
14/09/20
10313.0686
15/09/20
10680.2976
16/09/20
10829.5053
17/09/20
11033.3835
18/09/20
10937.1113
19/09/20
10933.9312
20/09/20
11048.8793
21/09/20
10852.9101
22/09/20
10526.2029
23/09/20
10531.1646
24/09/20
10260.033
25/09/20
10672.9568
26/09/20
10729.0696
27/09/20
10741.4765
28/09/20
10752.3454
29/09/20
10863.0657
30/09/20
10764.2844
01/10/20
10741.5795
02/10/20
10626.601
03/10/20
10567.3302
04/10/20
10555.0287
05/10/20
10660.6112
06/10/20
10756.4046
07/10/20
10589.6264
08/10/20
10645.7548
09/10/20
10897.5954
10/10/20
11052.3951
11/10/20
11360.8527
12/10/20
11334.0267
13/10/20
11666.2117
14/10/20
11443.7328
15/10/20
11395.5474
16/10/20
11504.549
17/10/20
11355.1604
18/10/20
11358.7064
19/10/20
11471.0025
20/10/20
11776.593
21/10/20
11936.3629
22/10/20
13102.9345
23/10/20
13140.6693
24/10/20
12933.8236
25/10/20
13081.6726
26/10/20
13008.4533
27/10/20
13033.5243
28/10/20
13721.2822
29/10/20
13282.2603
30/10/20
13467.7318
31/10/20
13573.7105

Figure 4 - Table On Price Of Bitcoin From 1st August 2020 To 31st October 2020

Graphical analysis

Figure 5 - Price Of Bitcoin From November ’19 To January ‘20
Figure 5 - Price Of Bitcoin From November ’19 To January ‘20
Figure 6 - Price Of Price Of Bitcoin From November ’19 To January ‘20 ’20 To April ‘20
Figure 6 - Price Of Price Of Bitcoin From November ’19 To January ‘20 ’20 To April ‘20
Figure 7 - Price Of Bitcoin From May ’20 To July ‘20
Figure 7 - Price Of Bitcoin From May ’20 To July ‘20
Figure 8 - Price Of Bitcoin From August ’20 To October ‘20
Figure 8 - Price Of Bitcoin From August ’20 To October ‘20
Figure 9 - Average Price Of Bitcoin From November ’19 To October ‘20
Figure 9 - Average Price Of Bitcoin From November ’19 To October ‘20

Calculation of R2

x

y

x2

y2

xy

1
9131.41063
1
83382660.1
9131.41063
2
9197.63234
4
84596440.7
18395.2647
3
9290.8966
9
86320759.7
27872.6898
4
9202.41545
16
84684450.1
36809.6618
5
9369.62808
25
87789930.4
46848.1404
6
9326.59962
36
86985460.5
55959.5977
7
9335.7524
49
87156272.9
65350.2668
8
9226.48582
64
85128040.6
73811.8866
9
8794.35864
81
77340744
79149.2278
10
8798.04205
100
77405544
87980.4205
11
9081.18688
121
82467955.1
99893.0557
12
8711.53434
144
75890830.5
104538.412
13
8760.89272
169
76753241.2
113891.605
14
8749.52059
196
76554110.6
122493.288
15
8656.97092
225
74943145.6
129854.564
16
8500.64356
256
72260940.9
136010.297
17
8469.2609
289
71728380.2
143977.435
18
8537.33965
324
72886168.3
153672.114
19
8205.80637
361
67335258.1
155910.321
20
8118.48854
400
65909856.1
162369.771
21
8074.84317
441
65203092.3
169571.707
22
7612.74057
484
57953819
167480.293
23
7262.11053
529
52738249.4
167028.542
24
7303.40576
576
53339735.7
175281.738
25
7041.73294
625
49586002.7
176043.323
26
7211.86181
676
52010950.7
187508.407
27
7141.06945
729
50994872.9
192808.875
28
7523.48067
784
56602761.4
210657.459
29
7390.20747
841
54615166.4
214316.017
30
7729.26594
900
59741552
231877.978
31
7542.23561
961
56885318
233809.304
32
7381.96301
1024
54493377.8
236222.816
33
7333.43293
1089
53779238.5
242003.287
34
7315.36776
1156
53514605.5
248722.504
35
7213.73376
1225
52037954.8
252480.682
36
7398.78705
1296
54742049.8
266356.334
37
7511.88058
1369
56428349.9
277939.582
38
7532.12351
1444
56732884.6
286220.693
39
7550.2392
1521
57006112
294459.329
40
7333.09604
1600
53774297.6
293323.842
41
7239.76258
1681
52414162.1
296830.266
42
7198.06668
1764
51812163.9
302318.8
43
7190.27237
1849
51700016.7
309181.712
44
7238.87432
1936
52401301.5
318510.47
45
7087.02499
2025
50225923.1
318916.124
46
7112.73148
2116
50590949.1
327185.648
47
6883.49639
2209
47382522.6
323524.331
48
6584.02884
2304
43349435.8
316033.384
49
7424.0154
2401
55116004.7
363776.755
50
7147.56832
2500
51087732.9
357378.416
51
7139.93337
2601
50978648.5
364136.602
52
7286.33508
2704
53090678.9
378889.424
53
7236.9862
2809
52373969.3
383560.269
54
7166.17238
2916
51354026.6
386973.308
55
7235.62665
3025
52354293
397959.466
56
7212.8094
3136
52024619.4
403917.326
57
7183.70654
3249
51605639.6
409471.273
58
7227.29371
3364
52233774.4
419183.035
59
7311.56064
3481
53458919
431382.078
60
7385.46485
3600
54545091
443127.891
61
7251.27679
3721
52581015.1
442327.884
62
7179.95782
3844
51551794.3
445157.385
63
7174.74401
3969
51476951.6
452008.873
64
6955.48758
4096
48378807.5
445151.205
65
7291.21951
4225
53161881.9
473929.268
66
7337.63667
4356
53840911.9
484284.02
67
7347.43326
4489
53984775.6
492278.029
68
7713.86075
4624
59503647.7
524542.531
69
8039.6037
4761
64635227.7
554732.655
70
8067.60637
4900
65086272.5
564732.446
71
7808.70136
5041
60975817
554417.797
72
8087.45289
5184
65406894.2
582296.608
73
8078.99353
5329
65270136.5
589766.528
74
8149.31372
5476
66411314.1
603049.215
75
8116.96101
5625
65885056
608772.076
76
8735.14244
5776
76302713.4
663870.825
77
8843.67573
5929
78210600.5
680963.031
78
8711.63758
6084
75892629.3
679507.731
79
8925.29903
6241
79660962.7
705098.623
80
8939.8643
6400
79921173.7
715189.144
81
8638.18144
6561
74618178.6
699692.697
82
8652.68376
6724
74868936.3
709520.069
83
8708.78601
6889
75842953.8
722829.239
84
8635.07436
7056
74564509.2
725346.246
85
8384.08878
7225
70292944.6
712647.546
86
8451.2323
7396
71423327.3
726805.977
87
8347.56751
7569
69681883.3
726238.373
88
8562.30747
7744
73313109.2
753483.057
89
8881.96239
7921
78889255.9
790494.653
90
9131.11499
8100
83377260.9
821800.349
91
9320.97841
8281
86880638.4
848209.035
92
9545.07796
8464
91108513.2
878147.172

Σx = 4278

Σy = 733375.097

Σx2 = 263810

Σy2 = 5902800

Σxy = 33977579

Figure 10 - Table On Processed Data For Calculation Of R2 For Group 1

r \(\frac{n\bigg(∑xy\bigg)-(∑x)(∑y)}{\sqrt{[n∑x^2-\bigg(∑x\bigg)^2][n∑y^2-\bigg(∑y\bigg)^2]}}\)

 

 => r = \(\frac{92(33977579)-(4278)(733375.097)}{[92(263810)-(4278)^2][92(5902800547)-(733375.097)^2]}\)

 

=> r2 = 0.0042

x

y

x2

y2

xy

1
9388.88075
1
88151081.8
9388.88075
2
9363.19338
4
87669390.3
18726.3868
3
9385.26039
9
88083112.5
28155.7812
4
9269.70703
16
85927468.5
37078.8281
5
9177.89464
25
84233750
45889.4732
6
9625.45664
36
92649415.5
57752.7398
7
9681.37741
49
93729068.6
67769.6419
8
9795.34407
64
95948765.4
78362.7525
9
9927.77826
81
98560781.1
89350.0043
10
10132.7065
100
102671741
101327.065
11
9838.90002
121
96803953.5
108227.9
12
10236.6351
144
104788699
122839.622
13
10364.9263
169
107431697
134744.042
14
10218.0997
196
104409562
143053.396
15
10367.528
225
107485637
155512.92
16
9926.35369
256
98532497.6
158821.659
17
9876.23496
289
97540017
167895.994
18
9636.62409
324
92864523.9
173459.234
19
10189.996
361
103836018
193609.924
20
9701.03719
400
94110122.6
194020.744
21
9631.48495
441
92765502.3
202261.184
22
9670.85865
484
93525507.1
212758.89
23
9689.08674
529
93878401.9
222848.995
24
9919.55145
576
98397500.9
238069.235
25
9640.46951
625
92938652.3
241011.738
26
9392.86963
676
88225999.9
244214.61
27
8787.97836
729
77228563.7
237275.416
28
8784.99535
784
77176143.3
245979.87
29
8778.47051
841
77061544.5
254575.645
30
8639.59142
900
74642539.9
259187.743
31
8548.94832
961
73084517.4
265017.398
32
8923.0444
1024
79620721.3
285537.421
33
8791.11206
1089
77283651.2
290106.698
34
8756.96106
1156
76684367
297736.676
35
9078.57878
1225
82420592.6
317750.257
36
9126.63682
1296
83295499.7
328558.926
37
8925.21349
1369
79659435.8
330232.899
38
8166.31389
1444
66688682.6
310319.928
39
7875.75088
1521
62027451.8
307154.284
40
7959.22827
1600
63349314.7
318369.131
41
7955.30628
1681
63286898.1
326167.558
42
5800.2089
1764
33642423.3
243608.774
43
5672.6812
1849
32179312
243925.292
44
5304.14995
1936
28134006.7
233382.598
45
5355.18737
2025
28678031.8
240983.432
46
4944.70234
2116
24450081.2
227456.307
47
5465.58259
2209
29872593.1
256882.382
48
5363.82285
2304
28770595.6
257463.497
49
6301.0634
2401
39703400
308752.107
50
6185.27984
2500
38257686.7
309263.992
51
6187.05375
2601
38279634.1
315539.741
52
5884.34013
2704
34625458.8
305985.687
53
6455.45469
2809
41672895.2
342139.098
54
6784.31801
2916
46026970.9
366353.173
55
6706.98509
3025
44983649
368884.18
56
6721.49539
3136
45178500.3
376403.742
57
6682.78005
3249
44659549.2
380918.463
58
6229.48834
3364
38806525
361310.324
59
5922.48984
3481
35075885.8
349426.9
60
6483.73945
3600
42038877.2
389024.367
61
6446.42135
3721
41556348.2
393231.702
62
6537.33646
3844
42736768
405314.861
63
6850.55871
3969
46930154.7
431585.199
64
6776.37009
4096
45919191.6
433687.686
65
6855.93326
4225
47003820.9
445635.662
66
6805.36229
4356
46312955.9
449153.911
67
7278.24397
4489
52972835.3
487642.346
68
7175.66748
4624
51490203.7
487945.388
69
7367.2934
4761
54277012
508343.244
70
7321.81661
4900
53608998.5
512527.163
71
6866.39819
5041
47147424.1
487514.271
72
6873.8485
5184
47249793.1
494917.092
73
7043.43886
5329
49610031
514171.037
74
6889.86377
5476
47470222.8
509849.919
75
6887.55491
5625
47438412.6
516566.618
76
6718.79995
5776
45142272.8
510628.796
77
7166.58282
5929
51359909.3
551826.877
78
7065.08239
6084
49915389.2
551076.426
79
7277.14059
6241
52956775.1
574894.106
80
7185.8703
6400
51636732
574869.624
81
6856.14643
6561
47006743.9
555347.861
82
6904.47577
6724
47671785.7
566167.013
83
7118.38875
6889
50671458.4
590826.266
84
7562.03283
7056
57184340.5
635210.758
85
7497.86176
7225
56217931
637318.25
86
7542.3034
7396
56886340.6
648638.092
87
7624.85379
7569
58138395.3
663362.279
88
7776.50754
7744
60474069.6
684332.664
89
7761.75878
7921
60244899.4
690796.532
90
8773.10649
8100
76967397.4
789579.584
∑x = 4095
∑y = 4095

∑x2 = 247065

∑y= 5837903

∑xy = 30001786.8

Figure 11 - Table On Processed Data For Calculation Of R2 For Group 2

r \(\frac{n\bigg(∑xy\bigg)-(∑x)(∑y)}{\sqrt{[n∑x^2-\bigg(∑x\bigg)^2][n∑y^2-\bigg(∑y\bigg)^2]}}\)

 

 => r = \(\frac{90(30001786.8)-(4095)(712404.228)}{\sqrt{[90(247065)-(4095)^2][90(5837903479)-(712404.228)^2]}}\)

 

=> r2 = 0.482

x

y

x2

y2

xy

1
8767.67262
1
76872083.2
8767.67262
2
8853.77448
4
78389322.6
17707.549
3
8963.05756
9
80336400.8
26889.1727
4
8904.71382
16
79293928.2
35618.8553
5
8887.50589
25
78987761
44437.5295
6
8978.28359
36
80609576.2
53869.7015
7
9371.68427
49
87828466.1
65601.7899
8
9900.67887
64
98023442
79205.4309
9
9917.24841
81
98351816.1
89255.2357
10
9617.51819
100
92496656.2
96175.1819
11
8786.65518
121
77205309.3
96653.207
12
8608.12525
144
74099820.2
103297.503
13
8815.23124
169
77708301.9
114598.006
14
9330.98648
196
87067308.8
130633.811
15
9757.29659
225
95204836.7
146359.449
16
9362.63556
256
87658944.6
149802.169
17
9418.91855
289
88716026.7
160121.615
18
9684.70196
324
93793452
174324.635
19
9723.68015
361
94549955.7
184749.923
20
9719.48085
400
94468308.1
194389.617
21
9540.88657
441
91028516.5
200358.618
22
9141.15064
484
83560635
201105.314
23
9192.84514
529
84508401.7
211435.438
24
9220.07589
576
85009799.4
221281.821
25
9048.71512
625
81879245.3
226217.878
26
8905.7816
676
79312946
231550.322
27
8835.72722
729
78070075.6
238564.635
28
9112.97918
784
83046389.5
255163.417
29
9507.52466
841
90393025.2
275718.215
30
9425.28187
900
88835938.3
282758.456
31
9688.32439
961
93863629.5
300338.056
32
9427.67008
1024
88880963.2
301685.443
33
10268.582
1089
105443776
338863.205
34
9516.13544
1156
90556833.8
323548.605
35
9667.06075
1225
93452063.6
338347.126
36
9811.36709
1296
96262924.3
353209.215
37
9659.6613
1369
93309056.4
357407.468
38
9677.05099
1444
93645316
367727.938
39
9737.45856
1521
94818099.2
379760.884
40
9791.9279
1600
95881852
391677.116
41
9786.14202
1681
95768575.6
401231.823
42
9874.96705
1764
97514974.2
414748.616
43
9260.83264
1849
85763021.2
398215.804
44
9464.2281
1936
89571613.5
416426.036
45
9458.65975
2025
89466244.3
425639.689
46
9351.95373
2116
87459038.5
430189.871
47
9441.769
2209
89147001.8
443763.143
48
9510.66064
2304
90452665.8
456511.711
49
9457.62707
2401
89446709.9
463423.727
50
9398.64209
2500
88334473.2
469932.105
51
9279.76077
2601
86113959.9
473267.799
52
9353.0782
2704
87480071.7
486360.066
53
9289.10449
2809
86287462.3
492322.538
54
9680.94713
2916
93720737.3
522771.145
55
9609.68025
3025
92345954.4
528532.414
56
9311.13632
3136
86697259.5
521423.634
57
9252.63337
3249
85611224.3
527400.102
58
9171.73209
3364
84120669.5
531960.461
59
9022.15377
3481
81399258.6
532307.072
60
9101.85006
3600
82843674.5
546111.003
61
9188.06138
3721
84420471.8
560471.744
62
9148.44486
3844
83694043.3
567203.581
63
9236.31677
3969
85309547.5
581887.957
64
9097.79737
4096
82769916.9
582259.031
65
9094.32456
4225
82706739.2
591131.096
66
9124.65353
4356
83259302.1
602227.133
67
9055.46448
4489
82001437
606716.12
68
9278.80564
4624
86096234
630958.783
69
9244.41581
4761
85459223.8
637864.691
70
9471.75997
4900
89714237
663023.198
71
9236.14325
5041
85306342.2
655766.171
72
9243.17526
5184
85436288.9
665508.619
73
9229.85975
5329
85190311.1
673779.762
74
9286.73704
5476
86243484.9
687218.541
75
9238.99375
5625
85359005.6
692924.532
76
9260.47098
5776
85756322.8
703795.794
77
9211.02643
5929
84843007.9
709249.035
78
9133.77783
6084
83425897.5
712434.671
79
9160.41059
6241
83913122.2
723672.437
80
9176.68639
6400
84211573.1
734134.911
81
9190.27153
6561
84461090.9
744411.994
82
9172.58833
6724
84136376.7
752152.243
83
9395.06445
6889
88267235.9
779790.349
84
9530.79089
7056
90835974.9
800586.434
85
9617.37786
7225
92493956.9
817477.118
86
9568.97473
7396
91565277.3
822931.826
87
9708.94914
7569
94263693.4
844678.575
88
9938.95122
7744
98782751.4
874627.708
89
11187.7797
7921
125166415
995712.396
90
10939.6701
8100
119676383
984570.313
91
11284.459
8281
127339015
1026885.77
92
11118.9184
8464
123630347
1022940.49
∑x = 4278
∑y = 867394.736

∑x= 263810

∑y2 = 8198700818

∑xy = 40700709

Figure 12 - Table On Processed Data For Calculation Of R2 For Group 3

r \(\frac{n\bigg(∑xy\bigg)-(∑x)(∑y)}{\sqrt{[n∑x^2-\bigg(∑x\bigg)^2][n∑y^2-\bigg(∑y\bigg)^2]}}\)

 

 => r = \(\frac{92(40700709)-(4278)(867394.736)}{\sqrt{[92(263810)-(4278)^2][92(8198700818)-(867394.736)^2]}}\)

 

=> r2 = 0.1001

x

y

x2

y2

xy

1
11373.3173
1
129352346
11373.3173
2
11766.7483
4
138456366
23533.4966
3
11139.0984
9
124079513
33417.2952
4
11261.8063
16
126828281
45047.2252
5
11228.0263
25
126068575
56140.1315
6
11653.4076
36
135801909
69920.4456
7
11796.8174
49
139164901
82577.7218
8
11639.9354
64
135488096
93119.4832
9
11744.9121
81
137942960
105704.209
10
11673.1232
100
136261805
116731.232
11
11832.2273
121
140001603
130154.5
12
11340.5823
144
128608807
136086.988
13
11549.5463
169
133392020
150144.102
14
11752.1687
196
138113469
164530.362
15
11783.2834
225
138845768
176749.251
16
11895.6269
256
141505939
190330.03
17
11896.9472
289
141537353
202248.102
18
12399.1119
324
153737976
223184.014
19
12071.7389
361
145726880
229363.039
20
11749.8295
400
138058493
234996.59
21
11833.8973
441
140041125
248511.843
22
11583.1389
484
134169107
254829.056
23
11674.6244
529
136296855
268516.361
24
11666.4101
576
136105125
279993.842
25
11744.0127
625
137921834
293600.318
26
11378.726
676
129475405
295846.876
27
11458.8226
729
131304615
309388.21
28
11302.121
784
127737939
316459.388
29
11482.2257
841
131841507
332984.545
30
11515.0444
900
132596248
345451.332
31
11657.0039
961
135885740
361367.121
32
11678.3733
1024
136384403
373707.946
33
11964.2087
1089
143142290
394818.887
34
11427.7026
1156
130592387
388541.888
35
10712.9206
1225
114766668
374952.221
36
10563.8969
1296
111595918
380300.288
37
10042.8549
1369
100858935
371585.631
38
10207.605
1444
104195200
387888.99
39
10381.7761
1521
107781275
404889.268
40
10043.1964
1600
100865794
401727.856
41
10268.4609
1681
105441289
421006.897
42
10341.016
1764
106936612
434322.672
43
10380.5396
1849
107755602
446363.203
44
10436.3654
1936
108917723
459200.078
45
10313.0686
2025
106359384
464088.087
46
10680.2976
2116
114068757
491293.69
47
10829.5053
2209
117278185
508986.749
48
11033.3835
2304
121735551
529602.408
49
10937.1113
2401
119620404
535918.454
50
10933.9312
2500
119550851
546696.56
51
11048.8793
2601
122077734
563492.844
52
10852.9101
2704
117785658
564351.325
53
10526.2029
2809
110800947
557888.754
54
10531.1646
2916
110905428
568682.888
55
10260.033
3025
105268277
564301.815
56
10672.9568
3136
113912007
597685.581
57
10729.0696
3249
115112934
611556.967
58
10741.4765
3364
115379317
623005.637
59
10752.3454
3481
115612932
634388.379
60
10863.0657
3600
118006196
651783.942
61
10764.2844
3721
115869819
656621.348
62
10741.5795
3844
115381530
665977.929
63
10626.601
3969
112924649
669475.863
64
10567.3302
4096
111668468
676309.133
65
10555.0287
4225
111408631
686076.866
66
10660.6112
4356
113648631
703600.339
67
10756.4046
4489
115700240
720679.108
68
10589.6264
4624
112140187
720094.595
69
10645.7548
4761
113332095
734557.081
70
10897.5954
4900
118757586
762831.678
71
11052.3951
5041
122155437
784720.052
72
11360.8527
5184
129068974
817981.394
73
11334.0267
5329
128460161
827383.949
74
11666.2117
5476
136100495
863299.666
75
11443.7328
5625
130959020
858279.96
76
11395.5474
5776
129858501
866061.602
77
11504.549
5929
132354648
885850.273
78
11355.1604
6084
128939668
885702.511
79
11358.7064
6241
129020211
897337.806
80
11471.0025
6400
131583898
917680.2
81
11776.593
6561
138688143
953904.033
82
11936.3629
6724
142476759
978781.758
83
13102.9345
6889
171686893
1087543.56
84
13140.6693
7056
172677190
1103816.22
85
12933.8236
7225
167283793
1099375.01
86
13081.6726
7396
171130158
1125023.84
87
13008.4533
7569
169219857
1131735.44
88
13033.5243
7744
169872756
1146950.14
89
13721.2822
7921
188273585
1221194.12
90
13282.2603
8100
176418439
1195403.43
91
13467.7318
8281
181379800
1225563.59
92
13573.7105
8464
184245617
1248781.37
∑x = 4278
∑y = 1047804.62

∑x2 = 263810

∑y2 = 11998253546

∑xy = 49153924.2

Figure 13 - Table On Processed Data For Calculation Of R2 For Group 4

r \(\frac{n\bigg(∑xy\bigg)-(∑x)(∑y)}{\sqrt{[n∑x^2-\bigg(∑x\bigg)^2][n∑y^2-\bigg(∑y\bigg)^2]}}\)

 

 => r = \(\frac{92(49153924.2)-(4278)(1047804.62)}{\sqrt{[92(263810)-(4278)^2][92(11998253546)-(1047804.62)^2]}}\)

 

=> r2 = 0.0447

Conclusion

In this IA, a correlation has been developed between the price of Bitcoin in last twelve months from November 2019 to October 2020. To make the study more accurate, the span of twelve months has been divided into four groups of three months each. For the first group, i.e., between the November 2019 to January 2020, the price of the Bitcoin is almost constant over the extremities. However, a considerable variation is changed throughout the 92 days. As a result, value of the correlation coefficient R2 is very less and equal to 0.0042. Such a less value of correlation coefficient significantly denies the existence of the correlation and thus it can be concluded that there exist no definite correlation between the price of the Bitcoin with time over the above-mentioned duration. Nevertheless, the equation of the trendline is shown below:

 

y = -1.9167x + 91954

 

For the second group, i.e., between the February 2020 to April 2020, the price of the Bitcoin is decreased over the duration. However, a considerable variation is changed throughout the 90 days. As a result, value of the correlation coefficient R2 is very less and equal to 0.482. The value of the coefficient is at a mid-way between 0 and 1 which though denies the existence of the correlation but with such a less value, it can be easily concluded that the correlation is not uniform throughout the duration which is significant from the graph as well. Nevertheless, the equation of the trendline is shown below:

 

y = -39.719x + 2X106

 

For the third group, i.e., between the May 2020 to July 2020, the price of the Bitcoin is increased over the duration. However, a considerable variation is changed throughout the 92 days. As a result, value of the correlation coefficient R2 is very less and equal to 0.1001. Such a less value of correlation coefficient significantly denies the existence of the correlation and thus it can be concluded that there exist no definite correlation between the price of the Bitcoin with time over the above-mentioned duration. Nevertheless, the equation of the trendline is shown below:

 

y = 5.6541x – 239337

 

For the fourth group, i.e., between the August 2020 to October 2020, the price of the Bitcoin is increased over the duration. However, a considerable variation is changed throughout the 92 days. As a result, value of the correlation coefficient R2 is very less and equal to 0.0447. Such a less value of correlation coefficient significantly denies the existence of the correlation and thus it can be concluded that there exist no definite correlation between the price of the Bitcoin with time over the above-mentioned duration. Nevertheless, the equation of the trendline is shown below:

 

y = 6.6429x - 281492

Bibliography

  • Antonopoulos, Andreas M. Mastering Bitcoin: unlocking digital cryptocurrencies. " O'Reilly Media, Inc.", 2014.
  • “Bitcoin Price Index — CoinDesk 20.” CoinDesk, https://www.coindesk.com/price/bitcoin. Accessed 2 Nov. 2020.