<p>Assuming that the BTC price is falling against USD, either BTC/LTC will remain stable and LTC will crash proportionately against USD <strong>or</strong> LTC/USD will remain stable and BTC will crash against LTC <strong>or</strong> something in between.  Otherwise, there will be arbitrage opportunities by changing by using LTC as an intermediary between BTC and USD</p>

CC BY-SA 3.0
2013-11-21T12:19:37.973Z
2013-11-21T12:19:37.973Z
RentFree
<p><a href="http://bitdango.com/currencypair/ltcbtc" rel="nofollow">LTC/BTC</a> and <a href="http://bitdango.com/currencypair/btcltc" rel="nofollow">BTC/LTC</a> are two currency pairs to look at here. You'll notice that as BTC/LTC goes down, LTC/BTC goes up. Basically what I've observed is that "perceived value" moves from Fiat to BTC to LTC. Meaning people will run up the price of BTC with USD or CNY and that will make BTC more "valuable". Then the price of LTC goes up because it now takes more LTC to buy BTC, since it can be sold for more Fiat, etc.</p>

CC BY-SA 3.0
2013-12-12T00:11:33.453Z
2013-12-12T00:11:33.453Z
Paul Fryer
<p>Judging by the historic rates of BTC/USD and LTC/USD, they have been well correlated at a daily level, <em>until recently</em>, when bitcoin has diverged from other major altcoins (as per <a href="http://coincorrelation.com" rel="nofollow">CoinCorrelation.com</a>)</p>

CC BY-SA 3.0
2014-07-05T18:08:16.620Z
2014-07-05T18:08:16.620Z
user3633626
<p>I always expected the LTC and BTC exchange rate to show synchronous tops/bottoms, but to my surprise LTC seems to remains stable during BTC crashes (and vice versa).</p>

<p>Is this because I'm a novice at chart-analysis, or is there really little correlation?</p>

CC BY-SA 3.0
2013-11-14T10:42:30.797Z
Are you looking at the charts of LTC/USD or LTC/BTC? There should be strong correlation between LTC/USD and BTC/USD, as they are both in the same cryptocurrency boat. I don't know if in practice such correlation is observed. For example if there is much higher variance in LTC/USD it will drown out the correlation.
Meni Rosenfeld
<exchanges><litecoin><exchange-rate><technical-analysis>
Does LTC price correlates to BTC price?
Maestro
# Does LTC price correlates to BTC price?

(Asked by: username_0 on 2013-11-14)

I always expected the LTC and BTC exchange rate to show synchronous tops/bottoms, but to my surprise LTC seems to remains stable during BTC crashes (and vice versa).

Is this because I'm a novice at chart-analysis, or is there really little correlation?

**Tags:** exchanges, litecoin, exchange-rate, technical-analysis

> **Comments:**
> **username_1**: Are you looking at the charts of LTC/USD or LTC/BTC? There should be strong correlation between LTC/USD and BTC/USD, as they are both in the same cryptocurrency boat. I don't know if in practice such correlation is observed. For example if there is much higher variance in LTC/USD it will drown out the correlation.  

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## 3 answers

### Answer by username_2 on 2013-11-21. Score: 1

Assuming that the BTC price is falling against USD, either BTC/LTC will remain stable and LTC will crash proportionately against USD **or** LTC/USD will remain stable and BTC will crash against LTC **or** something in between. Otherwise, there will be arbitrage opportunities by changing by using LTC as an intermediary between BTC and USD


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### Answer by username_3 on 2013-12-12. Score: 0

[LTC/BTC](http://bitdango.com/currencypair/ltcbtc) and [BTC/LTC](http://bitdango.com/currencypair/btcltc) are two currency pairs to look at here. You'll notice that as BTC/LTC goes down, LTC/BTC goes up. Basically what I've observed is that "perceived value" moves from Fiat to BTC to LTC. Meaning people will run up the price of BTC with USD or CNY and that will make BTC more "valuable". Then the price of LTC goes up because it now takes more LTC to buy BTC, since it can be sold for more Fiat, etc.


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### Answer by username_4 on 2014-07-05. Score: 0

Judging by the historic rates of BTC/USD and LTC/USD, they have been well correlated at a daily level, *until recently*, when bitcoin has diverged from other major altcoins (as per [CoinCorrelation.com](http://coincorrelation.com))


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