Does Chip depend on Bitcoin? Based on the correlation analysis, BTC and CHIP have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was calculated based on the previous 100-days' price dynamics 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 tells that the prices of the currencies are going in the contrary trend while the positive coefficient means that the prices are moving in the identical trend. For example, if Bitcoin and Chip connection is positively strong, it means that when BTC is growing CHIP will rise as well. The negative strong relation will show that when BTC is rising CHIP price will be in contrary lowering.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Chip. If we take all the things affecting the price of CHIP 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 things, such as media, technological releases or politics.