Does BINCOIN depend on Bitcoin? According to the correlation analysis, BTC and BIN have a strong positive relationship. The correlation coefficient of their prices is 0.47, which was computed based on the previous 100-days' price fluctuations of both cryptocurrencies.
This coefficient may change 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 means that the prices of the assets are going in the reversed trend while the positive coefficient shows that the prices are going in the same direction. For example, if Bitcoin and BINCOIN connection is positively strong, it means that when BTC is rising BIN will grow as well. The negative strong relation will indicate that when BTC is rising BIN value will be in contrary lowering.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over BINCOIN. If we take all the circumstances affecting the price of BIN as 100%, then the share of BTC price among these factors will be 22.09%. The other part which is 77.91% covers all the other aspects, such as media, technological releases or regulations.