Does Magnet depend on Bitcoin? According to the correlation analysis, BTC and MAG have a very strong positive relationship. The correlation coefficient of their values is 0.88, which was calculated based on the last 100-days' price dynamics of both cryptocurrencies.
This coefficient may change 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 points that the prices of the currencies are moving in the contrary trend while the positive coefficient points that the prices are going in the identical trend. For instance, if Bitcoin and Magnet connection is positively strong, it means that when BTC is growing MAG will grow as well. The negative strong relation will tell that when BTC is growing MAG value will be in contrary lowering.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over Magnet. If we take all the aspects affecting the price of MAG 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.