Does BitCoal depend on Bitcoin? According to the correlation analysis, BTC and COAL have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was estimated based on the previous 100-days' price dynamics of both cryptocurrencies.
This coefficient may vary 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 cryptocurrencies are going in the contrary trend while the positive coefficient shows that the prices are going in the identical direction. For example, if Bitcoin and BitCoal connection is positively strong, it means that when BTC is rising COAL will grow as well. The negative strong relation will tell that when BTC is growing COAL value will be in contrary lowering.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over BitCoal. If we take all the factors affecting the price of COAL 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.