Does CoinFi depend on Bitcoin? According to the correlation analysis, BTC and COFI have a strong negative relationship. The correlation coefficient of their values is -0.49, which was estimated based on the last 100-days' price movements of both assets.
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 cryptocurrencies are moving in the opposite trend while the positive coefficient means that the prices are going in the same trend. For example, if Bitcoin and CoinFi connection is positively strong, it means that when BTC is rising COFI will grow as well. The negative strong relation will show that when BTC is growing COFI value will be in contrary decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over CoinFi. If we take all the aspects affecting the price of COFI as 100%, then the share of BTC price among these factors will be 24.01%. The other part which is 75.99% covers all the other factors, such as media, technological releases or crypto related laws.