Does Tether depend on Bitcoin? According to the correlation analysis, BTC and USDT have a strong negative relationship. The correlation coefficient of their values is -0.61, which was measured based on the last 100-days' price movements of both currencies.
This coefficient may vary 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 coins are moving in the opposite direction while the positive coefficient indicates that the prices are going in the identical direction. For example, if Bitcoin and Tether connection is positively strong, it means that when BTC is rising USDT will grow as well. The negative strong relation will point that when BTC is growing USDT value will be in contrary lowering.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Tether. If we take all the aspects affecting the price of USDT as 100%, then the share of BTC price among these factors will be 37.21%. The other part which is 62.79% covers all the other factors, such as media, events or politics.