Does Waves Community Token depend on Bitcoin? According to the correlation analysis, BTC and WCT have a moderate positive relationship. The correlation coefficient of their prices is 0.37, which was estimated based on the last 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 indicates that the prices of the cryptocurrencies are moving in the opposite trend while the positive coefficient tells that the prices are going in the identical direction. For instance, if Bitcoin and Waves Community Token connection is positively strong, it means that when BTC is rising WCT will grow as well. The negative strong relation will show that when BTC is growing WCT price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over Waves Community Token. If we take all the factors affecting the price of WCT 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 media, technological releases or crypto related laws.