Does PrimeCoin depend on Bitcoin? According to the correlation analysis, BTC and XPM have a very strong positive relationship. The correlation coefficient of their values is 0.80, which was measured based on the last 100-days' price fluctuations 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 moving in the reversed trend while the positive coefficient points that the prices are moving in the same trend. For instance, if Bitcoin and PrimeCoin connection is positively strong, it means that when BTC is growing XPM will grow as well. The negative strong relation will tell that when BTC is rising XPM value will be in opposite lowering.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over PrimeCoin. If we take all the aspects affecting the price of XPM as 100%, then the share of BTC price among these factors will be 64.00%. The other part which is 36.00% covers all the other factors, such as news, events or regulations.