Does Dropil depend on Bitcoin? According to the correlation analysis, BTC and DROP have a very strong positive relationship. The correlation coefficient of their values is 0.84, which was calculated based on the previous 100-days' price fluctuations of both assets.
This coefficient may vary 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 tells that the prices of the currencies are going in the reversed trend while the positive coefficient shows that the prices are going in the identical trend. For example, if Bitcoin and Dropil connection is positively strong, it means that when BTC is rising DROP will grow as well. The negative strong relation will tell that when BTC is growing DROP value will be in contrary decreasing.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over Dropil. If we take all the factors affecting the price of DROP as 100%, then the share of BTC price among these factors will be 70.56%. The other part which is 29.44% covers all the other aspects, such as news, technological releases or crypto related laws.