Analyst in the making...
Bitcoin vs Stock Market
Objective: To determine whether there is a correlation between Bitcoin and the main stock market indexes.
Abstract/Methods: Information was gathered on Bitcoin, DJI, S&P 500, and NASDAQ Composite. The fields analyzed and documented are the open price, adjusted close price, highest price, and lowest price of each month. The excel file visualizes the trends of the prices throughout the months, with the prices shaded in blue are lower prices and prices in red are higher prices. Then, the median value of adjusted close prices for each subject was used as a variance benchmark to determine the average variance of the price as opposed to the median.
Note: The median value was chosen as opposed to the mean value because most indexes had a major increase in December, causing the mean value to skew higher than what it would normally be.
Results: The average variance report shows that, in general, Bitcoin does follow the trends of the main stock market indexes. Although Bitcoin does follow the positive/negative variance trends, the variance of Bitcoin is much greater than the other subjects. Bitcoin saw a 46% increase in December as compared to NASDAQ, which was the next highest at 15%. This is also supported by a 19% drop in Bitcoin in January, while the next highest drop was once again NASDAQ at 11%.