Does Switcheo depend on Bitcoin? Based on the correlation analysis, BTC and SWH have a strong positive relationship. The correlation coefficient of their prices is 0.47, which was estimated based on the last 100-days' price fluctuations 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 shows that the prices of the cryptocurrencies are moving in the reversed direction while the positive coefficient tells that the prices are going in the identical direction. For instance, if Bitcoin and Switcheo connection is positively strong, it means that when BTC is growing SWH will rise as well. The negative strong relation will indicate that when BTC is rising SWH price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over Switcheo. If we take all the circumstances affecting the price of SWH as 100%, then the share of BTC price among these factors will be 22.09%. The other part which is 77.91% covers all the other factors, such as news, events or regulations.