The movement of Cryptocurrency versus the stock index of the world

Abstract

The objectives of this study is  to find the relationship between  the movement of  Bitcoin  which   is biggest cryptocurrency  and movement of various important stock index around the world by using regression analysis  with  method  of  least squares  error.  And determine that which index is most suitable and precise to be used as reference to predict movement of cryptocurrency in short term timeframe.  All under the assumption that in same time period investors use the same investment strategy for both stock and cryptocurrency.  In this study use the movement of stock index to speculate investor’s mindset in that time period to determine investment strategy for cryptocurrency in same time period.

The results show that there is relationship between Movement of  Bitcoin’s Price and  Nasdaq Index and by trading under that assumption result is overall profit.