Does Foam depend on Bitcoin? According to the correlation analysis, BTC and FOAM have a weak positive relationship. The correlation coefficient of their prices is 0.20, which was estimated based on the last 100-days' price dynamics of both coins.
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 means that the prices of the cryptocurrencies are moving in the contrary direction while the positive coefficient shows that the prices are moving in the identical direction. For instance, if Bitcoin and Foam connection is positively strong, it means that when BTC is growing FOAM will rise as well. The negative strong relation will tell that when BTC is rising FOAM value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over Foam. If we take all the circumstances affecting the price of FOAM 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 factors, such as news, events or crypto related laws.