Does Stellar depend on Bitcoin? According to the correlation analysis, BTC and XLM have a strong positive relationship. The correlation coefficient of their prices is 0.55, which was calculated based on the last 100-days' price movements 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 means that the prices of the currencies are moving in the opposite trend while the positive coefficient shows that the prices are moving in the identical direction. For instance, if Bitcoin and Stellar connection is positively strong, it means that when BTC is growing XLM will rise as well. The negative strong relation will tell that when BTC is growing XLM value will be in contrary lowering.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over Stellar. If we take all the circumstances affecting the price of XLM as 100%, then the share of BTC price among these factors will be 30.25%. The other part which is 69.75% covers all the other factors, such as news, technological releases or crypto related laws.