In this research, we want to find out what are the dominant factors that affect the market capital of cryptocurrency market. Based on the research, we hope to find out whether the cryptocurrency market is really a market for opportunists and the other market factors that influence the cryptocurrency’s performance. The project is divided in following sections:
- Creating merging and cleaning data
- Creating regression models for top 200 crypto currencies
- Clustering them basis the trendlines observed for various crypto-currencies(Clustering the currencies using K-means basis the coefficients of different factors obtained in regression.)
- Comparison analysis of the relationship between BTC and top currencies / BTC and newly introduced currencies
- A simulation prediction to predict BTC’s future price
- Variables tested: Variables Implications Daily Opening Price of each currency- whether high opening price affects market capitalization Daily Trading Volume of each currency- Whether high trading volume affect market capitalization Daily Standard and Poor (S&P) 500 Index- Whether any correlation between stock market and cryptocurrency market Daily Gold Price- Whether any correlation between risk hedge asset and cryptocurrency market