Does Bitdeal depend on Bitcoin? Based on the correlation analysis, BTC and BDL 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 assets.
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 shows 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 trend. For instance, if Bitcoin and Bitdeal connection is positively strong, it means that when BTC is rising BDL will rise as well. The negative strong relation will indicate that when BTC is rising BDL value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Bitdeal. If we take all the things affecting the price of BDL 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 circumstances, such as media, events or crypto related laws.