Does Obsidian depend on Bitcoin? Based on the correlation analysis, BTC and ODN have a strong positive relationship. The correlation coefficient of their prices is 0.55, which was measured based on the last 100-days' price dynamics 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 coins are moving in the contrary trend while the positive coefficient means that the prices are moving in the same direction. For example, if Bitcoin and Obsidian connection is positively strong, it means that when BTC is growing ODN will grow as well. The negative strong relation will indicate that when BTC is rising ODN price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over Obsidian. If we take all the factors affecting the price of ODN as 100%, then the share of BTC price among these factors will be 30.25%. The other part which is 69.75% covers all the other factors, such as news, events or crypto related laws.