There has been an obvious and recent news of the dip in crypto prices. Some speculations behind it was the fact that the world is heading to a global recession but since the fall of bitcoin drastically though it affected major tokens but not really all were affected.

I was checking out on coin gecko the trend in prices of some tokens and decided to pick bitcoin and this particular token called Tether Gold (XAUT) you can aswell check that too on coin gecko.

In the course of this article, I shall present a brief about the type of test I wish to carryout to see if bitcoin and Tether Gold are falling at same rate. I shall also attempt to define what relationship analysis is all about and its theories, collection of data from coin gecko and its analysis and interpretation.

What is analysis of relationship About?

Analysis of relationship measures the rate at which two or more variables are linked together. The variables we considered using in this case are the prices of bitcoin and Tether Gold (XAUT) in the past 14 days.

It is essential to know that there are groups in which our result will lie. It might be,

Positive relationship
The relationship is actually positive when the price of bitcoin and tether gold falls and rise at same rate. Meaning at bitcoin rises, the price of XAUT rises and at it drops, the other drops.

It can be measured to be a minimal or maximum positive relationship. The graph of this relationship start from 0.3 to positive 1. Representing its strength as well.

Negative relationship
The relationship is actually negative when the price of bitcoin goes high, the price of XAUT drops. Like an opposite kind of relationship. It can be measured as well in terms of strength which indicates a weak or strong negative relationship.

Zero relationship
Zero relationship indicates that the trend in price of bitcoin and that of XAUT has no relationship in the real sense. 

Weather or not there is a relationship, we shall have the result in our analysis.

Importance of relationship analysis
Relationship analysis is quite important in the following ways;

It helps to determine the strength of relationship between two variables if its either weak or strong. 

It also helps to determine the directionality of relationship if its to the positive or negative side or even zero side.

I shall attempt to collect the prices of both tokens from coingecko. This analysis will be done using SPSS software for collection of price between both tokens from June 4th to June 18th of 2022.

![Screenshot (6).png](https://images.hive.blog/DQmU1ZeZF7g9hhPQJyjNRb3ZLnDMqzxi3aMTR8CncgwcSHG/Screenshot%20(6).png)<center> Taken With  Desktop Computer </center>

![Screenshot (2).png](https://images.hive.blog/DQmPNri3o4bgh2sxuvWA5j7zkvDzgqNst2dgP247PyfPgR7/Screenshot%20(2).png)<center> Taken With  Desktop Computer </center>


From the scatter diagram below,

![Screenshot (3).png](https://images.hive.blog/DQmWFngbabUJx5D4nAwXKrBZ4NWqWunbXDNS6eXbRBhRhny/Screenshot%20(3).png)<center> Taken With  Desktop Computer </center>

There is a very minimal but positive relationship between the price of bitcoin and that of Tether Gold (XAUT). 

We shall tends to carryout the correlation test to view how strong the rate at which bitcoin dip equates that of Tether Gold (XAUT).

![Screenshot (4).png](https://images.hive.blog/DQmcpVEXpvdAiWTQsAbdMu6VHpUBZi1ZiSeMQ2LNRYbqU5m/Screenshot%20(4).png)<center> Taken With  Desktop Computer </center>

From the analysis of relationship , 

![Screenshot (5).png](https://images.hive.blog/DQmTEMmb7mxJyCCfJXRihGKVjWfBQga8KbyQuhnokYDNwT1/Screenshot%20(5).png)<center> Taken With  Desktop Computer </center>

it is visible that there is a very little relationship between bitcoin and that of Tether Gold (XAUT). 

However the rate at which bitcoin falls isnt the same at the rate Tether Gold (XAUT) falls or rise.

Conclusively
Bitcoin dip doesn’t significantly affect the price of Tether Gold (XAUT).