Does BUSD depend on Bitcoin? According to the correlation analysis, BTC and BUSD have a strong negative relationship. The correlation coefficient of their values is -0.45, which was computed based on the last 100-days' price fluctuations of both currencies.
This coefficient may vary 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 points that the prices of the assets are moving in the reversed direction while the positive coefficient shows that the prices are going in the same trend. For instance, if Bitcoin and BUSD connection is positively strong, it means that when BTC is growing BUSD will rise as well. The negative strong relation will point that when BTC is growing BUSD value will be in contrary decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over BUSD. If we take all the aspects affecting the price of BUSD as 100%, then the share of BTC price among these factors will be 20.25%. The other part which is 79.75% covers all the other factors, such as media, technological releases or crypto related laws.