Litecoin News Update
Bitcoin futures will begin trading on the CBOE market as of 5:00 p.m. CT on December 10. You might be wondering why this is the lead story in our Litecoin news update. Bear with me.
The announcement of Bitcoin futures sent prices soaring across the industry. Ethereum and Litecoin reached all-time highs, not just Bitcoin. As such, you could expect the initiation of that futures contract to lead prices even higher.
Some people argue this is ridiculous. Futures contracts aren’t the same as spot prices, meaning that anyone buying Bitcoin futures isn’t actually creating more demand for Bitcoin.
This is technically true. However, there’s a ton of academic research that shows futures contracts and spot prices are somewhat correlated. And this makes sense when you think about it.
After all, a futures contract is supposed to reflect where the market thinks prices are headed in the weeks and months to come. Prices may vary because of risk and time-horizons, but price movements should be relatively similar.
Otherwise, you’d just create arbitrage opportunities.
In any case, this explains why December 10 is a tipping point for Bitcoin, but not for Litecoin and the rest. Why is this good news for them as well?
To put it bluntly, this Bitcoin futures contract is an experiment. If it works, then Wall Street is likely going to expand the field to include altcoin, at which point you’d expect LTC, ETH, and the rest to skyrocket.
Some of those gains are seeping in now.
What’s Going on with Litecoin Prices?
In the last 24 hours, LTC prices advanced 2.17% against the U.S. dollar. This brought the Litecoin to USD exchange rate to $103.19. Meanwhile, the Litecoin to Bitcoin rate edged 0.55% up to $0.00893131 BTC.
Daily Litecoin Chart
How Much LTC Are Investors Trading?
Until this morning, trading volumes had been on a three-day slide. Investors had swapped as much as $561.34 million in one 24-hour span, but that level has dropped to $341.04 million.
Despite this drop-off, Litecoin prices have held steady above $100.00. In fact, they have edged even higher.
Where Is LTC Demand Coming From?
Coinbase’s resident exchange, GDAX, accounts for 20.20% of total volume. OKEx and Bitfinex come in at No. 2 and No. 3, with 14.91% and 9.89%, respectively.
We maintain our $200.00 Litecoin price forecast for 2018.