Does Monero depend on Bitcoin? Based on the correlation analysis, BTC and XMR have a very strong positive relationship. The correlation coefficient of their values is 0.89, which was estimated based on the last 100-days' price movements 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 points that the prices of the cryptocurrencies are moving in the opposite trend while the positive coefficient tells that the prices are moving in the identical direction. For instance, if Bitcoin and Monero connection is positively strong, it means that when BTC is rising XMR will grow as well. The negative strong relation will tell that when BTC is rising XMR price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over Monero. If we take all the aspects affecting the price of XMR as 100%, then the share of BTC price among these factors will be 79.21%. The other part which is 20.79% covers all the other circumstances, such as media, events or regulations.