On one hand, you have Satoshi Nakamoto, Bitcoin’s mysterious founder who keeps to the shadows. No one knows who he is or what he looks like. And on the other hand, you have Litecoin’s Charlie Lee, who talks often and loudly.
For example, Mr. Lee made some serious Litecoin news this past weekend by tweeting the following:
It’s not often that crypto founders are this vocal.
Other visible cryptocurrency founders, such as Vitalik Buterin, usually try to avoid talking about the price of their cryptocurrency. They don’t want to appear as though they are boosting their currency.
When one Twitter user pointed this out to Mr. Lee, he replied with this:
He isn’t exactly shy, as you can see.
Nonetheless, the first tweet was interesting more for its substance than style. When Mr. Lee says that he is “99% sure” Litecoin prices will rise “after the B2X hardfork,” he actually has a solid argument. It is a sound proposition.
Bitcoin prices have soared in anticipation of the SegWit2x hard fork. Investors seem certain that this fork is a landmark moment in the currency’s evolution, which is why BTC can still find a bid at around $7,203.02. The hype is unreal.
Yet what happens when that moment passes?
It seems obvious, really, that money will reverse outward from Bitcoin into altcoins. And that would suggest that all the currencies damaged by Bitcoin’s ascent would benefit by extension.
In fact, recent Litecoin movement might foreshadow this trend.
The Litecoin to Bitcoin rate appreciated by roughly 3.38% today and about 6.38% yesterday, while the Litecoin to USD exchange rate only rose approximately 1.11% and 1.22%, respectively. This discrepancy is telling.
Daily Litecoin Chart
Although Charlie Lee stands to profit from his Litecoin price forecast, he isn’t wrong about the dynamics at play here. Bitcoin’s share of market cap has shot through the roof in recent weeks, reaching as high as 63%. Once that concentration starts to unravel, we could see LTC prices accelerate back to $90.00.