Does DonationCoin depend on Bitcoin? Based on the correlation analysis, BTC and DON have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was measured based on the last 100-days' price fluctuations of both assets.
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 coins are moving in the reversed trend while the positive coefficient means that the prices are going in the same direction. For example, if Bitcoin and DonationCoin connection is positively strong, it means that when BTC is rising DON will grow as well. The negative strong relation will point that when BTC is rising DON price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over DonationCoin. If we take all the factors affecting the price of DON 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 things, such as media, events or crypto related laws.