Litecoin News Update
At times, the cryptocurrency market can seem like a dream. Prices shoot for the moon, everybody gets rich, everyone is happy.
But then you have days like today, when reality arrives like a giant punch to the gut…
The story you’ll read everywhere is that Bitcoin crashed by double digits.
“Bitcoin falls below $10,000” is the headline everyone is running. It is a 180-degree reversal from the same news outlets that, earlier in the week, told the story of Bitcoin’s relentless ascension.
Things aren’t looking much better for Litecoin.
LTC crashed 17.48% against the U.S. dollar, bringing the Litecoin to USD exchange rate to $84.23. The Litecoin to Bitcoin rate, meanwhile, fell only 7.53% to 0.00867082 BTC.
Daily Litecoin Chart
In moments such as these, I often receive messages asking, “What’s causing this crash?”
It’s not rocket science, folks. People are cashing in their winnings.
They invested in cryptocurrencies to make money, and now they have. So they start to sell, which pushes down prices and convinces others that it is time to sell.
This is known as a “run” on asset prices. These runs happen often and at steep angles in the cryptocurrency market, but they don’t last forever. In fact, there have been at least two (more like three) major retracements in crypto prices this year.
However, these momentary squalls pass. The “run” ends. And LTC prices find a strong bidder once more, allowing them to continue their upward trek to $200.00.
I wrote virtually the same article in September. China had just banned cryptocurrency trading and the market was in flames. The total market cap of cryptocurrencies fell below $100.0 billion at that point, so it’s important to note how far we’ve come.
Total market cap is now around $298.5 billion. And that’s after yesterday’s fall.
Put another way, investors need to realize that this is how cryptocurrencies work. There is a ton of upside potential, but that volatility extends both ways. You should expect days like this. Embrace them.
We are undeterred in our optimism because we have seen this movie before. Our Litecoin price forecast still suggests that the currency will cross $200.00 in 2018.