Does Wrapped Bitcoin depend on Bitcoin? According to the correlation analysis, BTC and WBTC have a strong positive relationship. The correlation coefficient of their values is 0.63, which was measured based on the last 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 coins are moving in the contrary trend while the positive coefficient shows that the prices are going in the identical trend. For instance, if Bitcoin and Wrapped Bitcoin connection is positively strong, it means that when BTC is growing WBTC will grow as well. The negative strong relation will tell that when BTC is rising WBTC price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Wrapped Bitcoin. If we take all the things affecting the price of WBTC as 100%, then the share of BTC price among these factors will be 39.69%. The other part which is 60.31% covers all the other aspects, such as media, events or crypto related laws.