STATISTICAL INVESTIGATION OF THE POSSIBLE RELATIONS BETWEEN BITCOIN PRICES AND NASDAQ INDEX

Abstract

With the improvement of data technology advances and the sharp addition of web customers number since the 90s, numerous computerized monetary standards are presented. the most popular among them is Bitcoin. It was decided to investigate the possible relations between the most popular cryptocurrency Bitcoin price dynamics and global Nasdaq index dynamics using Mathematical and Statistical methods. The main question is: Are the Bitcoin prices somehow related with Nasdaq Composite Index? We use both, Quantitative and Qualitative data analysis methods to answer this question: Namely, the Regression model and Non­-Parametric testing. According to Quantitative methods, it was found that there exists a correlation and the regression equation is not bed: it seems that it is possible to explain about 60% of changes in Bitcoin Prices by changes in the Nasdaq Index. According to Qualitative methods, it was found that these two variables are independent. In this case, the Qualitative conclusion is more likely to be right, and the correlation is most likely because of coincidence.