Litecoin (LTC) prices soared on Tuesday morning, driven mostly by a reverse rotation of funds from Bitcoin (BTC) to altcoins. That was the headline Litecoin news, but of course, it raises the question: What caused the reverse rotation?
As usual, there are myriad factors pulling the price in different directions, but the most prominent is the emergence of Bitcoin Gold (BTG). For those who may not know, BTG is the unwanted offspring of Bitcoin and the step-sibling of Bitcoin Cash (BCH).
There are many similarities between BTG and BCH.
- Both forked off the Bitcoin blockchain.
- Both were formed by rebel factions of the Bitcoin development team.
- Both are unlikely to dethrone the original Bitcoin.
The only difference is that BTG officially came into existence this morning.
It was first mined as of block 491,407, when a handful of nodes enacted a protocol to “restore Bitcoin’s true purpose of decentralization.”
Color me skeptical, but as of right now, the fork’s only achievement is driving money from Bitcoin to the top altcoins. All the 25 biggest cryptocurrencies by market cap are trading higher than they were 24 hours ago. (With the exception of Bitcoin, of course.)
LTC prices, for instance, soared 9.23% against the U.S. dollar, leading the Litecoin to USD exchange to $58.62. At this pace, the rate is on track to pass $60.00 by tomorrow, if not the end of today.
Daily Litecoin Chart
The Litecoin to Bitcoin jumped by an even wider margin. It rose 10.80% to 0.01033920 BTC.
The unwinding of BTC Dominance—Bitcoin’s share of cryptocurrency market cap—is likely to drive LTC prices higher still. We believe that prices could top $90.00 in the next two months, then push upwards to our $200.00 Litecoin price forecast for 2018.