Does Blockchain Traded Fund depend on Bitcoin? According to the correlation analysis, BTC and BTF have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was measured based on the previous 100-days' price fluctuations of both currencies.
This coefficient may change 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 indicates that the prices of the coins are going in the reversed direction while the positive coefficient means that the prices are going in the same direction. For instance, if Bitcoin and Blockchain Traded Fund connection is positively strong, it means that when BTC is growing BTF will rise as well. The negative strong relation will show that when BTC is growing BTF value will be in contrary decreasing.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over Blockchain Traded Fund. If we take all the aspects affecting the price of BTF 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 news, technological releases or crypto related laws.