Does Prasm depend on Bitcoin? According to the correlation analysis, BTC and PSM have a strong positive relationship. The correlation coefficient of their prices is 0.68, which was estimated based on the previous 100-days' price fluctuations of both assets.
This coefficient may vary 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 cryptocurrencies are going in the reversed trend while the positive coefficient shows that the prices are going in the identical trend. For instance, if Bitcoin and Prasm connection is positively strong, it means that when BTC is growing PSM will grow as well. The negative strong relation will show that when BTC is rising PSM price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to calculate in percentage the influence of Bitcoin over Prasm. If we take all the aspects affecting the price of PSM as 100%, then the share of BTC price among these factors will be 46.24%. The other part which is 53.76% covers all the other things, such as media, events or crypto related laws.