Does Zero Carbon Project depend on Bitcoin? According to the correlation analysis, BTC and NRG have a very strong positive relationship. The correlation coefficient of their values is 0.76, which was estimated based on the previous 100-days' price fluctuations 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 going in the reversed trend while the positive coefficient means that the prices are moving in the identical direction. For example, if Bitcoin and Zero Carbon Project connection is positively strong, it means that when BTC is growing NRG will rise as well. The negative strong relation will indicate that when BTC is rising NRG price will be in opposite decreasing.
The knowledge of the correlation coefficient helps to determine in percentage the influence of Bitcoin over Zero Carbon Project. If we take all the aspects affecting the price of NRG as 100%, then the share of BTC price among these factors will be 57.76%. The other part which is 42.24% covers all the other aspects, such as news, technological releases or regulations.