Does Bismuth depend on Bitcoin? Based on the correlation analysis, BTC and BIS have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was computed based on the last 100-days' price fluctuations of both cryptocurrencies.
This coefficient may range 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 moving in the reversed trend while the positive coefficient tells that the prices are going in the identical trend. For example, if Bitcoin and Bismuth connection is positively strong, it means that when BTC is rising BIS will rise as well. The negative strong relation will show that when BTC is growing BIS value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over Bismuth. If we take all the aspects affecting the price of BIS 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 factors, such as news, events or regulations.