Does Ignition depend on Bitcoin? Based on the correlation analysis, BTC and IC have a very strong positive relationship. The correlation coefficient of their prices is 0.88, which was estimated based on the previous 100-days' price movements of both assets.
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 opposite trend while the positive coefficient shows that the prices are going in the identical trend. For instance, if Bitcoin and Ignition connection is positively strong, it means that when BTC is growing IC will rise as well. The negative strong relation will point that when BTC is rising IC value will be in contrary lowering.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Ignition. If we take all the things affecting the price of IC as 100%, then the share of BTC price among these factors will be 77.44%. The other part which is 22.56% covers all the other aspects, such as news, technological releases or regulations.