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Bitcoin And Near Protocol Token (Btc vs NEAR)

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Since the recovery of bitcoin from the dip, it has called for the need to carryout analysis on altcoins. The trend of bitcoin got some impact in terms of influence on other alt coins.

This article will visualize the type of influence bitcoin has on near token.

Objectives Of The Study In the course of this article, I shall tend to cover the following subtopics under influence test.

-What is influence test about? -Groups of influence -Significance of the analysis. -Data collection from coingecko.com of the price of bitcoin and that of near token -Analysis and interpretation of data. -Conclusion

What is influence test about? Influence test is based on correlation analysis to visualize if the prize of bitcoin in a bull weather affects near token in any form.

Categories of influence analysis The following are the categories of influence test.

Positive influence Positive influence between the price of bitcoin and that of near is positive when the price of bitcoin express a bullish influence, the price of near experiences same as well and vice versa. . This is said to be a positive influence and it tends towards +1 direction of the number scale.

Negative influence Influence between the price of bitcoin and that of near is negative when the price of bitcoin express a bullish influence, the price of near simultaneously experiences bearish. This is said to be a negative influence and it tends towards -1 direction on the number scale system of Karl Pearson..

Zero influence Zero influence indicates that there is no link between the price of bitcoin and that of near in the crypto market.

This test was invented by a statistician named Karl Pearson. This test uses letter “r” to indicate the category in which the relationship falls into. He proved variable existing can have a positive, negative or even zero correlation between the variables.

For a positive relationship r = 1 or tends towards a positive 1 axis. For a negative relationship r = -1 or tends towards a negative 1 axis. For zero relationship r = 0 or tends towards the zero axis.

Significance of the analysis

Test of influence is a theory to prove whether there is an influence that exist between the price of bitcoin and near token.

To examine the direction of influence. If it heads towards zero point, -1 or +1.

I shall attempt to collect data from coingecko.com as regards the price of bitcoin and that of near for the period of June 4 – June 27, 2022.

The price of bitcoin and near are the second and the third variable in the variable view mode of SPSS software.

Taken With Desktop Computer

The data view mode of both tokens can be seen below.

Taken With Desktop Computer

From the analysis of both prices, we shall attempt to consider running a scatter dot diagram.

Taken With Desktop Computer

From the scatter dot diagram, there is a positive relationship but its pertinent to view the strength of relationship.

Result

Taken With Desktop Computer

The result of the analysis shows that the coefficient of correlation r = 0.906 indicating it’s close to positive 1 axis. This is a maximum positive relation between bitcoin and Near token prices. When the price of bitcoin is in a bullish weather in the crypto market, the price of Near token will likely be in a bullish weather too. This happens at same rate.

The minimum and maximum Price of both tokens for that period is.

Taken With Desktop Computer

Conclusion The null hypothesis which states that there is no relationship between both tokens is incorrect from the result of analysis, we can visualize a maximum positive relationship between both tokens.