Does Blockchain Index depend on Bitcoin? Based on the correlation analysis, BTC and BLX have a strong positive relationship. The correlation coefficient of their prices is 0.68, which was measured based on the last 100-days' price fluctuations 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 means that the prices of the coins are moving in the reversed trend while the positive coefficient means that the prices are moving in the identical direction. For example, if Bitcoin and Blockchain Index connection is positively strong, it means that when BTC is rising BLX will grow as well. The negative strong relation will point that when BTC is growing BLX price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Blockchain Index. If we take all the aspects affecting the price of BLX 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 things, such as media, technological releases or crypto related laws.