Does Karmacoin depend on Bitcoin? Based on the correlation analysis, BTC and KARMA have a strong negative relationship. The correlation coefficient of their prices is -0.51, which was computed based on the previous 100-days' price fluctuations of both assets.
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 means that the prices of the assets are going in the reversed trend while the positive coefficient shows that the prices are moving in the same trend. For example, if Bitcoin and Karmacoin connection is positively strong, it means that when BTC is rising KARMA will grow as well. The negative strong relation will tell that when BTC is rising KARMA price will be in opposite lowering.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over Karmacoin. If we take all the factors affecting the price of KARMA as 100%, then the share of BTC price among these factors will be 26.01%. The other part which is 73.99% covers all the other circumstances, such as media, technological releases or politics.