Does Vechain depend on Bitcoin? According to the correlation analysis, BTC and VEN have a moderate positive relationship. The correlation coefficient of their prices is 0.37, which was estimated based on the previous 100-days' price dynamics of both assets.
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 cryptocurrencies are going in the contrary trend while the positive coefficient shows that the prices are moving in the same trend. For example, if Bitcoin and Vechain connection is positively strong, it means that when BTC is rising VEN will grow as well. The negative strong relation will indicate that when BTC is rising VEN price will be in contrary lowering.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Vechain. If we take all the circumstances affecting the price of VEN as 100%, then the share of BTC price among these factors will be 13.69%. The other part which is 86.31% covers all the other things, such as news, technological releases or regulations.