Does LociCoin depend on Bitcoin? According to the correlation analysis, BTC and LOCI have a very strong positive relationship. The correlation coefficient of their values is 0.92, which was estimated based on the previous 100-days' price movements 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 tells that the prices of the cryptocurrencies are going in the opposite trend while the positive coefficient indicates that the prices are moving in the same direction. For example, if Bitcoin and LociCoin connection is positively strong, it means that when BTC is growing LOCI will rise as well. The negative strong relation will point that when BTC is growing LOCI value will be in contrary decreasing.
The knowledge of the correlation coefficient helps to figure out in percentage the influence of Bitcoin over LociCoin. If we take all the things affecting the price of LOCI as 100%, then the share of BTC price among these factors will be 84.64%. The other part which is 15.36% covers all the other circumstances, such as news, technological releases or crypto related laws.