Does PotCoin depend on Bitcoin? Based on the correlation analysis, BTC and POT have a very strong positive relationship. The correlation coefficient of their values is 0.77, which was computed based on the previous 100-days' price dynamics of both currencies.
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 tells that the prices of the assets are going in the contrary direction while the positive coefficient means that the prices are moving in the same trend. For instance, if Bitcoin and PotCoin connection is positively strong, it means that when BTC is growing POT will grow as well. The negative strong relation will indicate that when BTC is growing POT value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over PotCoin. If we take all the things affecting the price of POT as 100%, then the share of BTC price among these factors will be 59.29%. The other part which is 40.71% covers all the other circumstances, such as media, technological releases or politics.