Exploration of the bitcoin cryptocurrency market
After Bitcoin was launched in 2009, hundreds of similar projects based on the blockchain technology have emerged. Currently, Bitcoin is the world’s largest cryptocurrency by market capitalization. Meanwhile, the cryptocurrency market is exceptionally volatile and can make you lose all the money easily. You will use the dataset ‘cryptocurrency_market_2017.csv’ from LMS to explore the bitcoin cryptocurrency market.
Your data analysis should include but not limited to the answers to the following questions: (20 points)
- Are there any cryptocurrencies listed in this dataset that have no known market capitalization (market_cap_usd)? If yes, they can be removed from the dataset.
- Bitcoin has the largest market capitalization. Let’s compare Bitcoin with the rest of the cryptocurrencies. You can visualize the percentage of market capitalization for the top 10 coins as a barplot. Consider how to improve the plot to make it easier to read and convey more information.
- Let’s explore the volatility of the cryptocurrencies market. You can select and plot the top 10 (sort by percent_change_24h in ascending order) coins’ 1 hour (percent_change_1h), 24 hours (percent_change_24h) and 7 days percentage change (percent_change_7d).
- Design the bar plots to best display the daily and weekly biggest gainers and the biggest losers in market capitalization.
- In general, cryptocurrencies with smaller capitalization are less stable projects, and therefore even riskier investments than the bigger ones. Following the Investopedia’s large capitalization definitions (https://www.investopedia.com/terms/b/bitcoin.asp), let’s find out the coins with large capitalization.
- Raise at least one question from your own regarding the bitcoin cryptocurrency market and find answers using the given dataset.