Does Sex Pistols depend on Bitcoin? According to the correlation analysis, BTC and SP have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was measured based on the previous 100-days' price movements of both assets.
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 means that the prices of the coins are going in the opposite trend while the positive coefficient tells that the prices are moving in the identical trend. For example, if Bitcoin and Sex Pistols connection is positively strong, it means that when BTC is rising SP will rise as well. The negative strong relation will show that when BTC is rising SP value will be in opposite lowering.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Sex Pistols. If we take all the things affecting the price of SP as 100%, then the share of BTC price among these factors will be 82.81%. The other part which is 17.19% covers all the other factors, such as news, technological releases or regulations.