Does Elektron depend on Bitcoin? Based on the correlation analysis, BTC and EKN have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was computed based on the previous 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 tells that the prices of the assets are going in the reversed trend while the positive coefficient tells that the prices are going in the identical trend. For example, if Bitcoin and Elektron connection is positively strong, it means that when BTC is rising EKN will rise as well. The negative strong relation will tell that when BTC is growing EKN value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Elektron. If we take all the factors affecting the price of EKN 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 circumstances, such as news, technological releases or crypto related laws.