Does Hydro Protocol depend on Bitcoin? According to the correlation analysis, BTC and HOT* have a strong positive relationship. The correlation coefficient of their values is 0.64, which was computed based on the previous 100-days' price fluctuations of both assets.
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 tells that the prices of the assets are going in the reversed trend while the positive coefficient tells that the prices are going in the identical trend. For instance, if Bitcoin and Hydro Protocol connection is positively strong, it means that when BTC is growing HOT* will grow as well. The negative strong relation will point that when BTC is rising HOT* price will be in opposite lowering.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Hydro Protocol. If we take all the circumstances affecting the price of HOT* as 100%, then the share of BTC price among these factors will be 40.96%. The other part which is 59.04% covers all the other factors, such as media, technological releases or regulations.