Does BitFlip depend on Bitcoin? Based on the correlation analysis, BTC and FLIP have a strong positive relationship. The correlation coefficient of their prices is 0.68, which was estimated based on the previous 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 means that the prices of the cryptocurrencies are going in the reversed trend while the positive coefficient shows that the prices are moving in the same direction. For example, if Bitcoin and BitFlip connection is positively strong, it means that when BTC is rising FLIP will rise as well. The negative strong relation will point that when BTC is rising FLIP price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over BitFlip. If we take all the factors affecting the price of FLIP as 100%, then the share of BTC price among these factors will be 46.24%. The other part which is 53.76% covers all the other factors, such as news, technological releases or crypto related laws.