Bitcoin and Altcoin Relationship

What is the correlation? In statistics, two or more variables are found by calculating how and what they affect each other and how much they affect. Correlation has aspects; positive and negative. If a variable, a movement of variable A affects variable B in the same way, we call it a positive correlation. On the contrary, it is considered as a negative correlation. The strength of the correlation, that is, the relationship, is also measured by the coefficient. Values ​​taken between -1 and +1 tell us the direction of the impact and the other one. The correlation coefficient is positive if it is between 0 and +1, and negative if it is between -1 and 0. 0 is neutral. The closer the coefficient to zero is, the more the effect power decreases, the closer to +/- 1 n, the more the effect power increases, +1 m is the detailed correlation and -1 is the reverse correlation. There is also a “Swallowing Correlation”. It shows that another C variable affects both, while investigating the effects of A and B with each other.

Bitcoin Domination and Altcoin Correlation

It is Bitcoin's interaction with altcoins. For this, it is necessary to consider the dominance of Bitcoin. Since Bitcoin is the main currency, the weight in the crypto market is also very important. The market dominance of Bitcoin (trade domination) refers to the trade volume of Bitcoin. The cryptocurrency that Bitcoin was after the release of 2009 brought with it. The increase (domination) of Bitcoin's market share shows that investors are more interested in the main currency than altcoins. Just like the pie share. Altcoins, which show a positive correlation with Bitcoin, will also gain value with the increase in Bitcoin dominance.