This might come as a shock to new investors, but South Korea plays a starring role in the cryptocurrency industry. It is a major trading center for several of the top cryptocurrencies.
That’s why the market is so excited about a Korean exchange starting to trade Litecoin. The ability for South Korean traders to get their hands on LTC could significantly raise demand for the currency—it is a major piece of Litecoin news for our LTC forecast.
Billions of dollars’ worth of Ripple, Ethereum, and Bitcoin swap hands on exchanges like Bithumb, Korbit, and Coinone. However, Litecoin lagged behind its peers in South Korean exposure.
It was much more widely circulated in China.
This, in part, explains why Litecoin suffered greater damage when China banned cryptocurrency trading. Investors understood where the bulk of trading volume was coming from.
However, we noted that there’s been a shift in the aftermath of China’s ban.
Litecoin started to see greater trading on Bithumb, and two American exchanges, GDAX and Bitfinex. Now that it is also available on Coinone, we could see the specter of China’s ban fade beyond memory.
Unsurprisingly, the shift added a solid bump to the LTC price. The Litecoin to USD exchange rate advanced 3.32% to $57.02, and the Litecoin to Bitcoin rate fell 2.72% to 0.00924784 BTC.
Bear in mind that this minor rally was in expectation of increased trading volumes from Korea.
At the moment, Litecoin trading volumes are still tepid at $138.3 million. That said, they are up 94.7% from the day before. In any case, we expect Coinone to become one of the top five markets for trading LTC within a month.
Daily Litecoin Chart
Just to give you a sense of how much South Korean traders can affect price dynamics, consider what happened to Ethereum this weekend. It typically has a wide base of support, but there was a surge on Bithumb, so that it accounted for 19.4% of total volume. As a result, ETH spiked more than three percent.
Likewise, Litecoin could continue to rise because of its new exposure. We expect this catalyst to help LTC recover to its previous highs of $90.00. Beyond that, we expect LTC to accelerate towards our Litecoin price forecast of $200.00.