As investors move beyond the dismal Litecoin news from last week, it’s becoming clear that a recovery won’t happen overnight.
In the last 24 hours, the Litecoin to USD exchange fell 3.15% to $52.63, while simultaneously falling 1.68% against Bitcoin.
LTC trading volume came in far below average, with only $286.6 million worth of Litecoin changing hands in the last 24 hours. The biggest trading center was Bithumb, a South Korean exchange, followed by a Chinese exchange called OKCoin.
Bithumb accounted for 18.43% of all Litecoin trading volume. Meanwhile, the two largest Chinese exchanges, Huobi and OKCoin, collectively accounted for 24.83%.
The outsize activity in these two exchanges is potentially what caused the slip in our Litecoin.
According to CoinDesk, Chinese regulators informed Huobi and OKCoin that they needed to halt yuan to Litecoin trading by the end of October. This obviously means that some portion of Litecoin investors will cash out of cryptocurrencies soon.
If this creates a vicious spiral in LTC prices, investors should take heart from the fact that China isn’t banning all cryptocurrency trading. Those that stay in the market will be able to engage in crypto-to-crypto transactions—they just won’t be able to cash out into yuan.
At the time of writing, BTC dominance stayed level at 48.2%.
Also, the total cryptocurrency market cap inched downwards to around $135.9 billion, registering lower trading volumes across the entire market.
While Litecoin is more resilient than traders generally accept, it is more fragile than either Ethereum or Ripple.
Why? Because investors think of it as “Bitcoin lite.”
That means LTC could shadow Bitcoin’s gains in the future, or it could mean that investors will drop Litecoin in favor of Bitcoin when the market starts to “thin the herd.”
In order to ensure its continued prosperity, Litecoin needs to fully embrace the “silver to Bitcoin’s gold” schtick. It needs to become the commercial alternative to Bitcoin, the one with lightning fast payments and completely secure transactions.
Only then can it achieve a Litecoin price forecast of $200.00.