Analysis of Bitcoin And Maker Token (Btc vs Mkr)

News surrounding the crypto space concerning the bearish chart of bitcoin price has led to reason why analysis of bitcoin is related to other tokens in the crypto market.

This analysis is a model invented by a statistician named Karl Pearson who invented the correlation theory.

Objectives Of The Study
In the course of this article, I shall tend to cover the following subtopics in this article

What is correlation test?
Categories of correlation result.
Summary of the model
Importance of correlation analysis
Data collection from coingecko.com of the price of bitcoin and Maker token.
Analysis and interpretation of data.
Conclusion

What is correlation test?
Correlation analysis is a test for relationship existence among variables. Some variables such as bitcoin price and maker could be positively related, negatively related or not even related in the universe.

Categories of correlation result
The result of correlation analysis falls into any of the following result. They are

Positive correlation
A positive correlation result between the price of bitcoin and that of maker token entails that as the price of bitcoin is in a pumping state, the price of maker token will also pump and vice versa.
This type of relationship tends to +1 axis.

Negative correlation
A negative correlation result between the price of bitcoin and that of maker token entails that as the price of bitcoin is in a pumping state, the price of maker token will be in a dump state and vice versa.
This type of relationship tends to +1 axis.

Zero relationship
An indication that there is a zero relationship between the price of bitcoin and that of maker means that as the price of bitcoin pumps, its impossible to tell if the price of maker will pump or dump. In a nutshell there is no relationship between both variables.
This type of relationship tends to 0 axis.

Summary for the model
-1 --------------------0--------------------+1
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.

Importance of correlation analysis
Correlation analysis is essential in analysis of crypto prices due to the following reasons.

It will examine if there is a mutual relationship between price of bitcoin and other tokens such as maker.

It identifies what direction is the relationship. could it in positive direction, negative direction or even zero.

It is also essential to indicate the strength of relationship if it’s a weak one or a strong one.

I shall attempt to collect data from coingecko.com as regards the price of bitcoin and that of maker for the period of June 4th – July 1st, 2022.

The price of bitcoin and Maker are the second and the seventh variable in the variable view mode of SPSS software.

The prices are further arranged in a data view mode of SPSS software.

It important in correlational analysis test to carry out the scattered diagram. This will help to present the direction of relationship.

From the scatter dot diagram, we can consider a positive relationship.

We have to verify what is the strength of the relationship by carrying out a correlation test.

The test can be done from the analyze menu
Click on analyze
Select correlate
Click bi-variate
Enter the variables for which you tends to carry out the relationship.

Result
The result of the correlation analysis shows that the coefficient of correlation is 0.713. indicating that there is a positive relationship between the price of bitcoin and that of maker token meaning as the price of bitcoin is in a bull, the price of maker will also be in a bull and vice versa.
The maximum and minimum price of both tokens are seen below for the period of stated time.

Conclusion
In conclusion, bitcoin (btc) has some relationship with maker token (mkr) above minimal level. It is worth investing. You can track the price bitcoin (btc) and maker token (mkr).