Does GrownCoin depend on Bitcoin? Based on the correlation analysis, BTC and GROW have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was estimated based on the previous 100-days' price fluctuations of both cryptocurrencies.
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 means that the prices of the cryptocurrencies are going in the reversed trend while the positive coefficient points that the prices are moving in the same direction. For instance, if Bitcoin and GrownCoin connection is positively strong, it means that when BTC is rising GROW will grow as well. The negative strong relation will show that when BTC is growing GROW value will be in opposite lowering.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over GrownCoin. If we take all the aspects affecting the price of GROW 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 things, such as news, technological releases or crypto related laws.