Does Ink Protocol depend on Bitcoin? Based on the correlation analysis, BTC and XNK have a very strong positive relationship. The correlation coefficient of their values is 0.71, which was calculated based on the last 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 indicates that the prices of the currencies are moving in the reversed trend while the positive coefficient tells that the prices are moving in the same direction. For instance, if Bitcoin and Ink Protocol connection is positively strong, it means that when BTC is growing XNK will grow as well. The negative strong relation will indicate that when BTC is growing XNK price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Ink Protocol. If we take all the circumstances affecting the price of XNK as 100%, then the share of BTC price among these factors will be 50.41%. The other part which is 49.59% covers all the other circumstances, such as media, technological releases or crypto related laws.