Does Ergo depend on Bitcoin? Based on the correlation analysis, BTC and EFYT have a strong positive relationship. The correlation coefficient of their prices is 0.41, which was computed based on the previous 100-days' price dynamics 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 shows that the prices of the assets are going in the contrary trend while the positive coefficient means that the prices are moving in the identical direction. For instance, if Bitcoin and Ergo connection is positively strong, it means that when BTC is growing EFYT will grow as well. The negative strong relation will show that when BTC is growing EFYT price will be in opposite lowering.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over Ergo. If we take all the factors affecting the price of EFYT as 100%, then the share of BTC price among these factors will be 16.81%. The other part which is 83.19% covers all the other circumstances, such as news, events or politics.