Does Index ERC20 depend on Bitcoin? Based on the correlation analysis, BTC and ERC20 have a moderate positive relationship. The correlation coefficient of their values is 0.34, which was computed based on the previous 100-days' price movements of both currencies.
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 tells that the prices of the assets are going in the opposite direction while the positive coefficient tells that the prices are moving in the same direction. For instance, if Bitcoin and Index ERC20 connection is positively strong, it means that when BTC is growing ERC20 will rise as well. The negative strong relation will point that when BTC is rising ERC20 price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over Index ERC20. If we take all the things affecting the price of ERC20 as 100%, then the share of BTC price among these factors will be 11.56%. The other part which is 88.44% covers all the other circumstances, such as media, events or crypto related laws.