Litecoin News Update
Litecoin prices were far from upbeat yesterday, but that bearishness was probably made worse by an outage on Coinbase.
For those unfamiliar with Coinbase, it is a major U.S. exchange for investors starting to dabble in cryptocurrencies. Downloads for its app surge every time there’s a bull market in cryptocurrencies.
This recent bull market was no exception. Coinbase was trending at the top of the Apple “App Store” as Bitcoin, Litecoin, and Ethereum hit record highs. Soon after, it announced that trading services were undergoing “maintenance.”
For Bitcoin, this meant a sharp fall from $10,000. For Ethereum, it meant falling back from $500.00. And for Litecoin, it meant dropping below the $90.00 threshold.
A big part of the story is that some investors are cashing in their profits. And this sell-off pushes down prices across the industry, inspiring fear of a “run” on cryptocurrencies.
It’s no surprise that LTC prices fell 5.49% against the U.S. dollar, bringing the Litecoin to USD exchange rate to $83.97.
But here’s my point: Litecoin prices could have fallen by a smaller margin if new investors could have entered the market through Coinbase. Logically, new investors would bid up LTC prices.
Now that the service is back up, we are expecting Litecoin prices to steady. Within one or two trading sessions, we could even see the currency back above $90.00.
Daily Litecoin Chart
How Active Are Investors?
Investors swapped $452.4 million of LTC tokens in the last 24 hours. This is relatively similar to the amount of Litecoin that was traded yesterday, but it is a sharp drop-off from November 29.
Where Are Investors Trading Litecoin?
Despite the outage, Coinbase’s exchange accounted for 19.62% of total volume. Bitfinex was No. 2 at 12.48% of total volume.
We maintain our $200.00 Litecoin price forecast for 2018.