Does Poseidon Chain depend on Bitcoin? According to the correlation analysis, BTC and PCCM have a moderate positive relationship. The correlation coefficient of their values is 0.32, which was computed based on the previous 100-days' price dynamics of both coins.
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 assets are going in the contrary direction while the positive coefficient tells that the prices are going in the identical trend. For instance, if Bitcoin and Poseidon Chain connection is positively strong, it means that when BTC is growing PCCM will rise as well. The negative strong relation will point that when BTC is rising PCCM price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Poseidon Chain. If we take all the factors affecting the price of PCCM as 100%, then the share of BTC price among these factors will be 10.24%. The other part which is 89.76% covers all the other factors, such as news, events or regulations.