Does Litecoin depend on Bitcoin? Based on the correlation analysis, BTC and LTC have a very strong positive relationship. The correlation coefficient of their prices is 0.83, which was calculated based on the previous 100-days' price dynamics of both cryptocurrencies.
This coefficient may range 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 means that the prices of the currencies are going in the contrary trend while the positive coefficient shows that the prices are moving in the identical direction. For example, if Bitcoin and Litecoin connection is positively strong, it means that when BTC is rising LTC will rise as well. The negative strong relation will show that when BTC is growing LTC value will be in opposite decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over Litecoin. If we take all the aspects affecting the price of LTC as 100%, then the share of BTC price among these factors will be 68.89%. The other part which is 31.11% covers all the other factors, such as news, events or crypto related laws.