Does bitUSD depend on Bitcoin? Based on the correlation analysis, BTC and BITUSD have a strong positive relationship. The correlation coefficient of their prices is 0.56, which was estimated based on the previous 100-days' price fluctuations of both cryptocurrencies.
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 shows that the prices of the cryptocurrencies are going in the reversed trend while the positive coefficient points that the prices are moving in the identical trend. For instance, if Bitcoin and bitUSD connection is positively strong, it means that when BTC is rising BITUSD will rise as well. The negative strong relation will show that when BTC is rising BITUSD price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over bitUSD. If we take all the things affecting the price of BITUSD as 100%, then the share of BTC price among these factors will be 31.36%. The other part which is 68.64% covers all the other circumstances, such as news, technological releases or regulations.