Does StableCoin depend on Bitcoin? Based on the correlation analysis, BTC and SBC have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was measured based on the previous 100-days' price dynamics of both currencies.
This coefficient may range 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 points that the prices of the coins are going in the contrary direction while the positive coefficient means that the prices are moving in the same trend. For example, if Bitcoin and StableCoin connection is positively strong, it means that when BTC is rising SBC will rise as well. The negative strong relation will show that when BTC is rising SBC value will be in opposite lowering.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over StableCoin. If we take all the things affecting the price of SBC 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 circumstances, such as news, events or crypto related laws.