Does BankCoin depend on Bitcoin? Based on the correlation analysis, BTC and [email protected] have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was computed based on the previous 100-days' price dynamics of both coins.
This coefficient may adjust from -1 to 1, where -1 is the strongest negative correlation, 0 is no correlation at all and 1 is the strongest positive correlation.
The negative coefficient points that the prices of the assets are going in the contrary direction while the positive coefficient indicates that the prices are moving in the same trend. For example, if Bitcoin and BankCoin connection is positively strong, it means that when BTC is rising [email protected] will grow as well. The negative strong relation will point that when BTC is rising [email protected] price will be in opposite lowering.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over BankCoin. If we take all the circumstances affecting the price of [email protected] as 100%, then the share of BTC price among these factors will be 82.81%. The other part which is 17.19% covers all the other things, such as media, technological releases or crypto related laws.