Crypto (CTO)





Bitcoin and Crypto Correlation

Does Crypto depend on Bitcoin? Based on the correlation analysis, BTC and CTO have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was estimated based on the previous 100-days' price movements 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 indicates that the prices of the cryptocurrencies are going in the opposite trend while the positive coefficient means that the prices are going in the same direction. For example, if Bitcoin and Crypto connection is positively strong, it means that when BTC is rising CTO will grow as well. The negative strong relation will point that when BTC is growing CTO value will be in opposite lowering.

The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over Crypto. If we take all the circumstances affecting the price of CTO 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 factors, such as media, technological releases or crypto related laws.