Does CircuitCoin depend on Bitcoin? According to the correlation analysis, BTC and CIR have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was computed based on the previous 100-days' price fluctuations 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 tells that the prices of the assets are going in the reversed trend while the positive coefficient means that the prices are going in the same direction. For example, if Bitcoin and CircuitCoin connection is positively strong, it means that when BTC is rising CIR will rise as well. The negative strong relation will tell that when BTC is rising CIR value will be in contrary lowering.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over CircuitCoin. If we take all the circumstances affecting the price of CIR 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 aspects, such as news, events or crypto related laws.