Today’s Litecoin news is strikingly similar to our prediction from earlier in the week. We warned you that the Bitcoin to Bitcoin Cash rotation was bizarre and that it would most likely reverse in due course. And of course, that is exactly what’s happening.
BCH dropped 19% overnight, while Bitcoin soared back to $7,500.
Meanwhile, Litecoin prices took a small hit from the BTC rotation. The Litecoin to USD exchange rate dipped from $64.71 to $63.06, a decrease of 2.55%.
Daily Litecoin Chart
But those losses were nothing in the context of Bitcoin’s rising market share and the general bloodbath.
Considering that Litecoin was trading around $55.00 before the whole thing started, one could argue that it actually came out ahead. In any case, though, we should consider where the currency goes from here.
For example, how long will it take LTC prices to reach $100.00?
Let’s do the math.
Litecoin currently has a market cap of around $3.396 billion. It needs to get nearer to $5.4 billion in order for its price to exceed $100.00 per LTC token, which means it needs to:
- Capture a high percentage of new money flowing into cryptos, or
- Poach market share from rival currencies.
In either case, Litecoin needs about $2.0 billion of new investment. Let’s assume its market share grows to five percent as Bitcoin Cash drops, or once the bottom tranche of ICOs fail.
That means that cryptocurrencies only need to add $40.0 billion in total for Litecoin to reach the $100.00 level.
If that sounds like a lot, consider that from September to November, the total market cap jumped $144.6 billion. That is a huge increase in just two months.
Now, it is unreasonable to expect another surge of that magnitude. However, it is perfectly reasonable to assume that cryptocurrencies could add $40.0 billion in the next two months.
This thought experiment was hypothetical, but it goes to show how soon LTC can reach $100.00. It could happen within the next two months.
We maintain our $200.00 Litecoin price forecast for the long term, but first, we’d like to see LTC hit a more achievable target.