Does Deep Gold depend on Bitcoin? According to the correlation analysis, BTC and DEEP have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was computed based on the last 100-days' price fluctuations 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 means that the prices of the assets are moving in the reversed trend while the positive coefficient points that the prices are going in the identical direction. For example, if Bitcoin and Deep Gold connection is positively strong, it means that when BTC is growing DEEP will grow as well. The negative strong relation will show that when BTC is growing DEEP price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over Deep Gold. If we take all the circumstances affecting the price of DEEP 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, events or regulations.