Does Verasity depend on Bitcoin? Based on the correlation analysis, BTC and VRA have a very strong positive relationship. The correlation coefficient of their values is 0.88, which was estimated based on the previous 100-days' price movements of both assets.
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 indicates that the prices of the cryptocurrencies are going in the opposite trend while the positive coefficient shows that the prices are going in the same direction. For instance, if Bitcoin and Verasity connection is positively strong, it means that when BTC is rising VRA will rise as well. The negative strong relation will tell that when BTC is growing VRA price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over Verasity. If we take all the aspects affecting the price of VRA as 100%, then the share of BTC price among these factors will be 77.44%. The other part which is 22.56% covers all the other circumstances, such as news, events or politics.