Does PlayChip depend on Bitcoin? According to the correlation analysis, BTC and PLA have a strong positive relationship. The correlation coefficient of their values is 0.65, which was measured based on the previous 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 tells that the prices of the coins are going in the contrary trend while the positive coefficient tells that the prices are going in the identical trend. For example, if Bitcoin and PlayChip connection is positively strong, it means that when BTC is growing PLA will grow as well. The negative strong relation will tell that when BTC is growing PLA price will be in opposite lowering.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over PlayChip. If we take all the factors affecting the price of PLA as 100%, then the share of BTC price among these factors will be 42.25%. The other part which is 57.75% covers all the other things, such as news, events or regulations.