Does Circle USDC depend on Bitcoin? According to the correlation analysis, BTC and USDC have a weak negative relationship. The correlation coefficient of their prices is -0.24, which was computed based on the last 100-days' price movements of both cryptocurrencies.
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 shows that the prices of the assets are moving in the opposite trend while the positive coefficient shows that the prices are moving in the identical trend. For instance, if Bitcoin and Circle USDC connection is positively strong, it means that when BTC is rising USDC will grow as well. The negative strong relation will indicate that when BTC is rising USDC price will be in contrary lowering.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over Circle USDC. If we take all the factors affecting the price of USDC as 100%, then the share of BTC price among these factors will be 5.76%. The other part which is 94.24% covers all the other circumstances, such as news, technological releases or regulations.