Daily Litecoin News Update
A dark cloud is once again hanging over crypto-land. After two days of recovery following the massive crash, cryptocurrencies are back in the red zone. But this cloud has a silver lining that investors must not miss.
Here are three major negative headlines that have sparked pessimism in the crypto-world in the past couple days.
First, South Korea continued the tradition by leading the charge against cryptocurrencies. To begin with, South Korea’s largest bank will no longer be supporting bank accounts linked with cryptocurrency exchanges.
Secondly, the largest Korean exchange, Korbit, says it will no longer be entertaining foreigners on its platform. In other words, non-Koreans won’t be able to trade cryptocurrencies on the Korean exchange.
Finally, the emerging market for cryptocurrencies, India, hammered another nail in the coffin. Indian authorities are now going after cryptocurrency investors, handing out tax bills.
It may seem like the sky is falling but it’s not. Like I said, there is a silver lining.
Here’s how the top cryptocurrencies, including Litecoin, have been responding to this news. Obviously, Litecoin is not alone. In fact, compared to peers, it may have been faring somewhat better.
Chart courtesy of TradingView.com
I dug deeper into these headlines and none has shaken my belief in Litecoin, or cryptocurrencies in general.
Firstly, yes, the biggest South Korean bank, Kookmin Bank, will not be supporting cryptocurrency exchanges going forward. But the void it’ll create will be filled by the second-largest bank, Shinhan Bank.
Crypto exchange Korbit confirms that users can simply move over to Shinhan Bank to continue trading. I don’t see how this should be of any concern to investors considering the fact that the South Korean government has already confirmed that there will be no ban on cryptocurrency trading, just some regulations.
Moving on, the news about Korbit blocking out foreigners is not a big deal at all. Korean exchanges have already been unwelcoming to foreign traders. The proportion of non-Koreans traders on South Korean exchanges is insignificant. So this news shouldn’t even count as a significant cause of concern for LTC holders.
And finally, the Indian authorities taxing cryptocurrencies should actually be considered good news. After all, it establishes them as a legitimate asset class in a country where about $3.5 billion worth of cryptocoins were traded in under a year and a half. This emerging market could soon be replacing the shrinking Chinese market. (Source: “India sends tax notices to cryptocurrency investors as trading hits $3.5 billion,” Reuters, January 19, 2018.)
All in all, these news headlines may not be heartwarming at first glance but dig a little, and they aren’t too heartrending either.
None of these pessimistic headlines rattle our trust in Litecoin. There’s no reason for LTC holders to fear this short-lived bad news. Litecoin is continuing to strive to become the top choice for digital payments against Bitcoin, and it’s slowly getting there.
We have no reason to change our Litecoin price forecast, which stays bullish with an LTC price target of $400.00.