Does Essentia depend on Bitcoin? Based on the correlation analysis, BTC and ESS have a weak positive relationship. The correlation coefficient of their values is 0.20, which was calculated based on the previous 100-days' price fluctuations of both assets.
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 indicates that the prices of the currencies are going in the reversed trend while the positive coefficient shows that the prices are moving in the same direction. For example, if Bitcoin and Essentia connection is positively strong, it means that when BTC is rising ESS will rise as well. The negative strong relation will show that when BTC is rising ESS value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over Essentia. If we take all the things affecting the price of ESS as 100%, then the share of BTC price among these factors will be 4.00%. The other part which is 96.00% covers all the other circumstances, such as media, events or crypto related laws.