Does Lithium depend on Bitcoin? Based on the correlation analysis, BTC and LIT have a very strong positive relationship. The correlation coefficient of their prices is 0.91, which was measured based on the previous 100-days' price dynamics of both currencies.
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 coins are going in the contrary direction while the positive coefficient indicates that the prices are moving in the same direction. For instance, if Bitcoin and Lithium connection is positively strong, it means that when BTC is growing LIT will grow as well. The negative strong relation will show that when BTC is growing LIT value will be in contrary lowering.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over Lithium. If we take all the things affecting the price of LIT 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 factors, such as media, events or regulations.