Daily Litecoin News Update
We can shortlist at least three reasons that caused crypto prices to crash on Wednesday. None, however, had anything to do with Litecoin directly. And looking at Litecoin’s price performance, it’s heartening to see some common sense prevail in the market.
Just to be clear, Litecoin has been the only crypto in the top 10 that has largely held out against the marketwide selling pressure.
Now, in case you didn’t follow, here are the three plausible reasons driving this frenzied sell-off.
Firstly, the U.S. Senate subcommittee hearing on crypto regulations yesterday was a major disappointment for crypto lovers. Cryptos were called a “crock” and were likened to tools of financing terrorism and laundering money. Basically, it was an antithesis of February’s Senate hearing.
Then, just hours prior to the meeting, Google announced that it would be banning all cryptocurrency ads on its search engine by June to curb crypto scams.
Finally, investors are seemingly still overreacting to last week’s revelation that a Japanese crypto whale is dumping bitcoins in the market. A trustee of crypto exchange Mt. Gox, which is now defunct, has been selling his massive Bitcoin holding for the past three months during which prices have plummeted significantly. The dumping was revealed only a week ago and investors fear that the crash will worsen as the whale continues his dumping.
If you break down all of these news snippets, you realize that nothing really affects Litecoin directly in the long run.
The Senate hearing revealed nothing new. It was a repeat telecast of all prior crypto hearings where ill-informed congressmen called out on regulators to banish cryptos, while the level-headed representatives suggested moderate regulations.
We have full conviction that the government has no intention to ban cryptos. We also believe that investors will be welcoming regulations as they’ll help rein in price volatility. So panic over this news is mostly uncalled for.
Moving on, Google’s ban on crypto ads doesn’t affect Litecoin since Litecoin’s growth hinges on word-of-mouth marketing not formally paid-for Google ads. We discussed this in our news update yesterday. So this news, too, doesn’t shake our belief in Litecoin.
Finally, the Mt. Gox whale’s Bitcoin dumping will certainly affect Bitcoin prices. But how does this affect Litecoin again?
Of course, when the leader of the pack falters, the followers lose their morale. But over time, they should pull themselves together and keep marching forward.
Chart courtesy of TradingView.com
It’s pleasing to see that Litecoin investors made sense of what is going on, unlike the rest of the market. Litecoin shed only about 2.4% of its value in the past 24 hours, faring much better than Bitcoin and most other cryptos. Meanwhile, the LTC to BTC rate is, in fact, up about 3.14% in the same time, as Litecoin prices strengthen against Bitcoin.
Crypto prices move at supersonic speed, mostly driven by hourly news. So it’s best to avoid reading too much into prices on a day-to-day basis.
We are focused on the long-term performance of Litecoin, which we believe has the potential to deliver stupendous gains. As such, we stick to our Litecoin price prediction with a $400.00 price target for 2018.