LTC prices appreciated by roughly 9.5% yesterday, following what can only be characterized as a stampede out of crypto markets on the Labor Day weekend.
It was broad-based industry trends, rather than a single item of Litecoin news, that drove the price movement. Overall, the crypto market cap rebounded to $159.3 billion, while Litecoin prices rose to $75.14 (at the time of writing).
As with previous rallies in LTC prices, trading on Korean exchanges like Bithumb was primarily responsible for the upward pressure.
Although trading volume from Korean exchanges has not become as dominant as it has with other currencies (Ripple is more than two-thirds dominated by investors looking to get rid of their Korean won), it is well on its way.
Two weeks ago, the most active exchange in Litecoin trading would have been found in China or the United States. Now it is Bithumb on an almost daily basis. Bithumb accounted for 28.72% of volume, or $238.17 million, in recent trading activity.
Litecoin is likely to keep getting swept up in industry trends this week because there were significant reports coming from the Russian Central Bank and Canada’s financial watchdog, two entities which had previously shown cautious enthusiasm for blockchain.
Russia’s monetary authority appears unnerved by the rapid pace of blockchain expansion, saying that widespread acceptance of cryptocurrencies is “premature.”
On the other hand, one of Canada’s regulatory bodies was more concerned about privacy, namely that blockchain provides too much of it. The argument is that a “veil of anonymity” could create potential complications for policing efforts.
It is a little surprising that Canadian officials only just grasped the crucial element of cryptocurrencies. Tradeoffs between privacy and security have always been at the heart of the discussion.
Their remarks, along with those made by the Russians, will likely throw a wrench in the works for a day or two. Beyond that, I expect the rise in Korean trading to emerge as the most powerful force affecting the Litecoin price forecast.
If we are correct, it will likely push Litecoin prices to nearly $200.00 by the start of 2018.