Bitcoin Fundamental: hash rate vs price, returns 78% correlation
Updated
The graph shows hash rate divided price for bitcoin. The distribution of points is linear, increasing from left to right, indicating a strong positive correlation.
A quick check with python shows that Bitcoin price and hash rate have a 78% Pearson correlation taken over the entire history of the market. To put that into perspective, anything above 50% would normally fall into a "high correlation" category.
This does not say anything about causation or even future performance, just that as hash rate has been increasing so has price in a fairly linear fashion.
A quick check with python shows that Bitcoin price and hash rate have a 78% Pearson correlation taken over the entire history of the market. To put that into perspective, anything above 50% would normally fall into a "high correlation" category.
This does not say anything about causation or even future performance, just that as hash rate has been increasing so has price in a fairly linear fashion.
Comment
Here is an examination of each individual bull run wave: twitter.com/BarclayJames1/status/1171477636565983237
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