Does BipCoin depend on Bitcoin? Based on the correlation analysis, BTC and BIP have a weak positive relationship. The correlation coefficient of their values is 0.21, which was computed based on the previous 100-days' price fluctuations of both currencies.
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 tells that the prices of the assets are going in the reversed direction while the positive coefficient tells that the prices are moving in the same direction. For example, if Bitcoin and BipCoin connection is positively strong, it means that when BTC is growing BIP will rise as well. The negative strong relation will indicate that when BTC is rising BIP value will be in opposite lowering.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over BipCoin. If we take all the factors affecting the price of BIP as 100%, then the share of BTC price among these factors will be 4.41%. The other part which is 95.59% covers all the other factors, such as news, technological releases or crypto related laws.