Does Cryptonite depend on Bitcoin? Based on the correlation analysis, BTC and XCN 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 fluctuations of both currencies.
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 cryptocurrencies are going in the reversed direction while the positive coefficient indicates that the prices are moving in the identical trend. For example, if Bitcoin and Cryptonite connection is positively strong, it means that when BTC is growing XCN will grow as well. The negative strong relation will indicate that when BTC is growing XCN value will be in contrary lowering.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over Cryptonite. If we take all the aspects affecting the price of XCN 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 circumstances, such as media, technological releases or crypto related laws.