Does Tezos depend on Bitcoin? According to the correlation analysis, BTC and XTZ have a very strong positive relationship. The correlation coefficient of their values is 0.84, which was calculated based on the previous 100-days' price movements of both assets.
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 tells that the prices of the currencies are going in the opposite trend while the positive coefficient points that the prices are moving in the same direction. For example, if Bitcoin and Tezos connection is positively strong, it means that when BTC is rising XTZ will rise as well. The negative strong relation will indicate that when BTC is growing XTZ price will be in opposite lowering.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over Tezos. If we take all the aspects affecting the price of XTZ as 100%, then the share of BTC price among these factors will be 70.56%. The other part which is 29.44% covers all the other factors, such as media, technological releases or politics.