Does DragonSphere depend on Bitcoin? Based on the correlation analysis, BTC and XDB 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 movements of both cryptocurrencies.
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 shows that the prices of the assets are moving in the opposite trend while the positive coefficient points that the prices are going in the same trend. For example, if Bitcoin and DragonSphere connection is positively strong, it means that when BTC is rising XDB will rise as well. The negative strong relation will show that when BTC is rising XDB price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over DragonSphere. If we take all the things affecting the price of XDB 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 news, technological releases or politics.