Does FractalCoin depend on Bitcoin? Based on the correlation analysis, BTC and FRAC 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 movements of both cryptocurrencies.
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 assets are going in the opposite trend while the positive coefficient means that the prices are moving in the identical trend. For example, if Bitcoin and FractalCoin connection is positively strong, it means that when BTC is growing FRAC will rise as well. The negative strong relation will tell that when BTC is growing FRAC price will be in opposite lowering.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over FractalCoin. If we take all the circumstances affecting the price of FRAC 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 factors, such as news, events or regulations.