Does Dogecoin depend on Bitcoin? Based on the correlation analysis, BTC and DOGE have a very strong positive relationship. The correlation coefficient of their values is 0.88, which was estimated based on the last 100-days' price dynamics of both coins.
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 moving in the contrary direction while the positive coefficient tells that the prices are moving in the identical direction. For instance, if Bitcoin and Dogecoin connection is positively strong, it means that when BTC is rising DOGE will rise as well. The negative strong relation will show that when BTC is rising DOGE price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Dogecoin. If we take all the aspects affecting the price of DOGE as 100%, then the share of BTC price among these factors will be 77.44%. The other part which is 22.56% covers all the other things, such as media, events or regulations.