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SupplyShock (M1)

Correlation

0.91

Influence

82.81%

Bitcoin and SupplyShock Correlation

Does SupplyShock depend on Bitcoin? Based on the correlation analysis, BTC and M1 have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was estimated based on the previous 100-days' price movements of both currencies.

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 indicates that the prices of the cryptocurrencies are going in the opposite direction while the positive coefficient tells that the prices are moving in the identical trend. For instance, if Bitcoin and SupplyShock connection is positively strong, it means that when BTC is growing M1 will grow as well. The negative strong relation will show that when BTC is growing M1 price will be in opposite decreasing.

The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over SupplyShock. If we take all the aspects affecting the price of M1 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, technological releases or politics.