Daily Litecoin News Update
Despite all the recent positive news we’ve shared about Litecoin, LTC prices are still struggling to find a bottom. Cryptocurrency markets at large, and not Litecoin, are to blame here. All of the top cryptocurrencies entered the red zone two days ago and have stayed there since.
As we try to make sense of the situation, it becomes glaringly obvious that fickle investors are once again playing into the hands of market fear, uncertainty, and doubt (FUD). Markets seem to be crashing again and there are two seemingly bad pieces of news driving the sell-off. But as you’ll soon find out, neither affects Litecoin’s fundamentals.
But first, here’s one piece of good news. The Finance Minister of South Korea has just confirmed that the country will not be banning cryptocurrency trading. (Source: “South Korea says no plans to ban cryptocurrency exchanges, uncovers $600 million illegal trades,” Reuters, January 30, 2018.)
Let’s pause and take a huge sigh of relief. Phew!
But markets are remaining cautious following the country’s imposition of the anonymous trading ban that went into effect yesterday. This ban only ensures that cases of money laundering and tax evasion are curbed. However, irrational investors are reacting to it as if it’s the end of the world for cryptocurrencies.
Mind you, South Korea is continuing to move forward with cryptocurrency adoption. Just yesterday, we reported that one of the largest e-commerce companies in the country will soon be accepting a dozen cryptocurrencies, including Litecoin, for payments.
Moving on, in other news, the markets just found out that the U.S. Commodities Futures Trading Commission (CFTC) sent a subpoena to the firm running cryptocurrency Tether. Tether touts itself as a cryptocurrency pegged to the U.S. dollar, by which it means that all of its outstanding coins are backed by an equal amount of dollars lying in its reserves. The CFTC just wants to make sure it’s true.
How does this affect Litecoin or any other cryptocurrency? We’re at a loss. What’s even more ridiculous is that the subpoena was sent back in December. There’s no reason for markets to be reacting a month later.
Litecoin founder Charlie Lee has commented on this very aptly. Putting it in his words:
“It should not affect BTC or any other altcoins. The reason why it does is because people are afraid of it affecting and they sell.
This becomes a self-fulfilling prophecy. People afraid of price crashing, sell their coins, and cause the price to actually crash. IMO, hodl is the best move to ride this out.”
(Source: “Twitter,” @SatoshiLite, January 30, 2018.)
We reiterate Lee’s advice. The best way to weather this storm is, indeed, to hold on, which is why our Litecoin price forecast is unchanged at this point with the LTC price target of $400.00 for 2018.