Litecoin News of the Day
Litecoin prices benefited from a sudden tailwind on Friday morning, which drove the LTC price up by more than 4.4%. This, in turn, put the Litecoin to USD price back above $55.00.
Before we get to what this means for Litecoin, it’s important to note that cryptocurrencies passed an important milestone on Friday morning: $200.0 billion in market cap.
I predicted this earlier in the year, so it’s gratifying to see that I was right.
But that’s neither here nor there.
What truly matters is that people thought $200.0 billion was an impossible target. They doubted, as they have in the past, that cryptocurrencies could reach higher.
Why? Because they think it’s a bubble, of course.
Despite being wrong then, and before, and before, and before… they keep calling it a bubble.
But what does this have to do with our Litecoin news update?
Well, for one thing, the Litecoin price is partly driven by macro forces. It surges when there are positive regulatory changes and plummets when countries like China ban crypto trading.
However, there’s more. Litecoin is also driven by perception. It matters that investors see legitimacy in Litecoin, because that could mean institutional investment is on the way.
For example, CME Group Inc (NASDAQ:CME) plans to add Bitcoin futures besides its gold and crude oil contracts. This was perceived as a huge dose of credibility for Bitcoin, which is why investors boosted the BTC price to $7,400 in response to the news.
In the same way, Litecoin is gathering credibility. It was approved for LTC/USD trades on Coinbase earlier in the year and is gaining prominence with South Korean trading desks.
Daily Litecoin Chart
If you layer the $200.0-billion crypto market cap achievement on top of that, there might be enough bait for ambitious hedge funds to start trading LTC. This could mean more volume and, consequently, higher prices for existing “holders.”
Since CME has decided to list BTC, it means they are open to the entire asset class of cryptocurrencies. We could soon see ETH, XRP, and LTC listings there. If this happens for LTC, we would almost certainly see the currency accelerate to our $200.00 Litecoin price forecast.