Daily Litecoin News Update
From $9,000 to $19,000. That’s how far BTC prices traveled in the 17 days of December from the day Bitcoin futures were first announced by the CME Group Inc (NASDAQ:CME) and Cboe Global Markets Inc (NASDAQ:CBOE) to the day they began trading on the two options exchanges. Now, just try to imagine where Litecoin prices would be headed if Litecoin futures were to be announced today.
Didn’t you hear? Cryptocurrency exchange Gemini is adding two new cryptocurrencies to its trading platform. One of them is Litecoin.
So what? Half a dozen other exchanges likewise added Litecoin this year. What’s so special about Gemini?
To begin with, Gemini is a strategic partner of Cboe Global Markets Inc. Yes, the same Cboe where Bitcoin futures are traded. Gemini is the only exchange that has the exclusive rights to provide Cboe with the price and trading data on BTC futures.
When the Gemini founders—the Winklevoss twins—entered into this partnership, there was an implicit understanding between the two parties that the Cboe would eventually expand to other cryptocurrency futures.
Until now, Gemini has only supported Bitcoin and Ethereum. But now that it’s planning to add the two coins of the “Satoshi Nakamoto family tree,” Litecoin and Bitcoin Cash, the launch of additional crypto futures seems more plausible than ever before.
Our speculation is rooted in Gemini chief Tyler Winklevoss’s prediction. He says, “In 2018, you’re really going to see institutions and Wall Street really get in [on cryptos], and it’s going to look very different.” (Source: “Winklevoss Twins Say Crypto Exchange May Offer More Coins,” Bloomberg Technology, March 8, 2018.)
Now, we know what happens when smart money flows into a crypto; the charging bull of Wall Street runs straight to it. We saw a trailer of it back in December when the Bitcoin futures were launched. The BTC price more than doubled in a matter of a fortnight.
But even if Litecoin futures were a distant reality, addition to the Gemini exchange is still a big deal. After all, it is the second most popular exchange in the U.S. after Coinbase. Addition to the exchange means more investors and more liquidity for LTC prices.
So, in the best-case scenario, Litecoin enters the futures market, triggering prices to skyrocket overnight. In the worst-case scenario, Litecoin continues to grow without a tertiary futures market and LTC prices see a more gradual ascension. Either way, in the long run, Litecoin is a winner in our book.
Chart courtesy of TradingView.com
In the short term, however, Litecoin prices are continuing to seesaw as the market takes another deep dive. The LTC to USD rate is down about 7.74% in the past 24 hours. One Litecoin is changing hands for roughly $174.68 apiece.
Regardless, out of all of the top cryptos, Litecoin is the closest to Bitcoin in both letter and spirit, which makes it the perfect case for the next crypto futures.
By drawing parallels between the two “coins of the Satoshi Nakamoto family,” we may be able to arrive at a reliable estimate for LTC prices. Our calculation delivers a ballpark figure close to our Litecoin price prediction of $400.00.