Does Social Media Coin depend on Bitcoin? Based on the correlation analysis, BTC and SMAC 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 fluctuations of both assets.
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 means that the prices of the coins are going in the reversed trend while the positive coefficient means that the prices are going in the identical direction. For example, if Bitcoin and Social Media Coin connection is positively strong, it means that when BTC is growing SMAC will grow as well. The negative strong relation will show that when BTC is growing SMAC value will be in contrary decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over Social Media Coin. If we take all the circumstances affecting the price of SMAC 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 media, technological releases or crypto related laws.