Does MetalCoin depend on Bitcoin? Based on the correlation analysis, BTC and METAL have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was computed based on the previous 100-days' price fluctuations 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 shows that the prices of the assets are going in the reversed trend while the positive coefficient indicates that the prices are going in the identical direction. For example, if Bitcoin and MetalCoin connection is positively strong, it means that when BTC is rising METAL will grow as well. The negative strong relation will indicate that when BTC is rising METAL price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over MetalCoin. If we take all the factors affecting the price of METAL as 100%, then the share of BTC price among these factors will be 82.81%. The other part which is 17.19% covers all the other things, such as media, events or crypto related laws.