Does Tao depend on Bitcoin? Based on the correlation analysis, BTC and XTO have a strong positive relationship. The correlation coefficient of their prices is 0.42, which was measured based on the previous 100-days' price fluctuations 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 shows that the prices of the coins are going in the reversed direction while the positive coefficient points that the prices are going in the same trend. For example, if Bitcoin and Tao connection is positively strong, it means that when BTC is rising XTO will rise as well. The negative strong relation will indicate that when BTC is rising XTO price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over Tao. If we take all the circumstances affecting the price of XTO as 100%, then the share of BTC price among these factors will be 17.64%. The other part which is 82.36% covers all the other factors, such as media, events or crypto related laws.