Does Emerald depend on Bitcoin? Based on the correlation analysis, BTC and EMD have a moderate positive relationship. The correlation coefficient of their values is 0.30, which was calculated 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 points that the prices of the currencies are moving in the reversed trend while the positive coefficient means that the prices are going in the identical direction. For example, if Bitcoin and Emerald connection is positively strong, it means that when BTC is growing EMD will grow as well. The negative strong relation will tell that when BTC is rising EMD value will be in opposite lowering.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Emerald. If we take all the factors affecting the price of EMD as 100%, then the share of BTC price among these factors will be 9.00%. The other part which is 91.00% covers all the other circumstances, such as news, technological releases or crypto related laws.