Does LiteBitcoin depend on Bitcoin? According to the correlation analysis, BTC and LBTC have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was computed 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 shows that the prices of the assets are going in the reversed trend while the positive coefficient indicates that the prices are moving in the identical direction. For instance, if Bitcoin and LiteBitcoin connection is positively strong, it means that when BTC is growing LBTC will grow as well. The negative strong relation will point that when BTC is growing LBTC price will be in contrary decreasing.
The knowledge of the correlation coefficient helps to estimate in percentage the influence of Bitcoin over LiteBitcoin. If we take all the things affecting the price of LBTC 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 aspects, such as media, events or crypto related laws.