Does Doubloon depend on Bitcoin? Based on the correlation analysis, BTC and BOAT have a very strong positive relationship. The correlation coefficient of their prices is 0.90, which was computed based on the previous 100-days' price movements of both assets.
This coefficient may adjust 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 going in the opposite trend while the positive coefficient shows that the prices are moving in the identical direction. For instance, if Bitcoin and Doubloon connection is positively strong, it means that when BTC is growing BOAT will rise as well. The negative strong relation will tell that when BTC is rising BOAT value will be in contrary decreasing.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over Doubloon. If we take all the circumstances affecting the price of BOAT as 100%, then the share of BTC price among these factors will be 81.00%. The other part which is 19.00% covers all the other aspects, such as media, events or crypto related laws.