Does WashingtonCoin depend on Bitcoin? According to the correlation analysis, BTC and WASH have a very strong positive relationship. The correlation coefficient of their values is 0.91, which was computed based on the last 100-days' price fluctuations of both cryptocurrencies.
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 points that the prices of the assets are moving in the reversed trend while the positive coefficient tells that the prices are moving in the same trend. For instance, if Bitcoin and WashingtonCoin connection is positively strong, it means that when BTC is rising WASH will rise as well. The negative strong relation will indicate that when BTC is rising WASH price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over WashingtonCoin. If we take all the things affecting the price of WASH as 100%, then the share of BTC price among these factors will be 82.81%. The other part which is 17.19% covers all the other things, such as news, technological releases or crypto related laws.