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Content

  1. Importing necessary python libraries and loading the data.
  2. Initial data discovery for checking how the data is stored in resources.
  3. Trend graphs of the tables given to understand better the density, quality and limits of the raw data.
  4. Data cleaning and preperation for making the tables more useful during calculations.
  5. Calculations for performance and volatility comparisons.
  6. Performance of Bitcoin compared to the S&P 500 and gold price in montly graphs.
  7. Performance of Bitcoin vs (negative) CPI change to understand inflation affect.
  8. Volatility of Bitcoin compared to the S&P 500 in daily basis when stock market was open.
  9. Volumes of Bitcoin compared to the S&P 500
  10. Advantage comparison
  11. Conclusion

At the end of every section, there's a short conclution about the outcomes.

Importing Libraries and Loading the Data

import pandas as pd
import numpy as np
import plotly.graph_objects as go
from datetime import datetime
bitcoin =      pd.read_csv('./data/bitcoin-usd.csv',  parse_dates=['date'])
sp500 =        pd.read_csv('./data/sp500.csv',        parse_dates=['date'])
monthly_data = pd.read_csv('./data/monthly_data.csv', parse_dates=['date'])

Initial Data Discovery

bitcoin.head()
sp500.head()
monthly_data
Insights of the section:
  • Both Bitcoin and S&P 500 have data in daily basis.
  • As S&P 500 is aligned with the only open days of the stock market, Bitcoin has weekend data additionally.

Trend Graphs for Data Discovery

fig_bitcoin = go.Figure(data=[go.Candlestick(x=bitcoin['date'],
                open=bitcoin['open'],
                high=bitcoin['high'],
                low=bitcoin['low'],
                close=bitcoin['close'])])
fig_bitcoin.update_layout(
    title='Bitcoin daily price over time',
    yaxis_title='USD')
fig_bitcoin.show()
fig_sp500 = go.Figure(data=[go.Candlestick(x=sp500['date'],
                open=sp500['open'],
                high=sp500['high'],
                low=sp500['low'],
                close=sp500['close'])])
fig_sp500.update_layout(
    title='S&P 500 stocks daily price over time',
    yaxis_title='USD')
fig_sp500.show()
fig_gold = go.Figure([go.Scatter(x=monthly_data["date"], y=monthly_data["gold_usd"])])
fig_gold.update_layout(
    title='Monthly gold price over time',
    yaxis_title='USD')
fig_gold.show()
fig_cpi = go.Figure([go.Scatter(x=monthly_data["date"], y=monthly_data["cpi_us"])])
fig_cpi.update_layout(
    title='The inflation index for the US over time',
	yaxis_title='CPI')
fig_cpi.show()
Insights of the section:
  • Bitcoin seems to be more risky but much more profitable over the past years.
  • S&P 500 seem to have a constantly rising trend in general over time (except the year 2020 with pandemic).
  • Gold price doesn't seem profitable for the last 2 years against CPI where it was increasing, most of the time.
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