Does Dollar Token 1 depend on Bitcoin? Based on the correlation analysis, BTC and DT1 have a very strong negative relationship. The correlation coefficient of their prices is -0.77, which was calculated based on the last 100-days' price fluctuations 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 shows that the prices of the currencies are moving in the reversed trend while the positive coefficient means that the prices are moving in the identical direction. For instance, if Bitcoin and Dollar Token 1 connection is positively strong, it means that when BTC is growing DT1 will grow as well. The negative strong relation will show that when BTC is rising DT1 value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over Dollar Token 1. If we take all the aspects affecting the price of DT1 as 100%, then the share of BTC price among these factors will be 59.29%. The other part which is 40.71% covers all the other things, such as news, events or crypto related laws.