# Bitcoin and Chia Correlation

Interested in an actual mathematical way of seeing how correlated Bitcoin and Chia prices are, I found a mathematical equation, called the “Pearson Correlation Coefficient” formula.

The formula finds correlation between 2 sets of numbers. It uses a scale of 1.00 to -1.00 . 1.00 being absolute correlation, and -1.00 being exact opposite.

Using data from January 19th, 2022 - December 21st, 2021, using the daily high’s, I calculated (long explanation of how its done, but if you would like to go through it all yourself, feel free to), that Bitcoin and Chia price have a correlation value of .9086 on Pearsons scale, which determines that the prices are very correlated. To put this into perspective, although not the same timeline, but Ethereum and Bitcoin have a correlation of .91 .

To sum it up, anyone saying that Bitcoin and Chia prices aren’t correlated, don’t argue me, ARGUE MATH.

Notes: I rounded the daily highs of to the nearest dollar for mathematical ease, but will have very little affect on outcome. I used the Pearson calculator at Pearson Correlation Coefficient Calculator . I included the last 29 days (from todays date) of data from the daily highs of Bitcoin and daily high of Chia.

2 Likes

its definitely related in a way when bitcoin drops, but when bitcoin goes up I dont see chia going up awhile back then.

Anything will correlate to some extent depending on the timescale of data used.

Run the math again using say daily average BTC/XCH price since Chia launch and tell us the results ?

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