ForexMinute.com – It is sad to see a cryptocurrency like Litecoin literally getting strangled to oblivion, if not death. In the last 24 hours, Litecoin market has seen a scary drop that has brought its value down to $4, its 10-month’s low. This ultimately has raised suspicion of a possible panic sell in the next 24 hours.
By looking at the following chart, one can notice the state of panic under which Litecoin is currently being traded.
The round of speculation has once again taken place inside the Litecoin community. Most of the fingers are pointed towards Bitcoin’s poor performance on the trading charts. As the BTC reaching its double bottom at $480, its psychological impact on Litecoin charts is visible in the above-listed chart. The BTC value was expected to drop, but indeed it has crossed the expectation by dropping at such large extents. As the entire cryptocurrency clan is presumed to be coupled with Bitcoin, the nearest and the most-traded coins are facing its impact – Litecoin one among them.
Like we mentioned in one of our Cryptocurrency Trading News articles, over $2 million BTC have been sold in low volume market, that too within a short span of time. This might also be contributing to the likewise fall of Bitcoin and Litecoin. Litecoin however has its own set of problems. However, this is only bad for short term fundamentals.
But the most discussed the trouble with Litecoin markets is related to its miners who are said to have dumping the coins at large scales. Those who have purchased the expensive Scrypt ASIC mining machines on credits are finding it impossible to make enough returns. Rolling back a little, it is also said by the Litecoin members that the leading ASICs manufacturing companies are holding a large chunk of their coins. And it is them which are dropping the coins big time. The statement however is contradictory.
One of the members from the Litecoin community says, “Why would they ever “be done selling”? They will have to continue to pay electric bills and creditors for all the miners they bought. With GPU and CPU mining the miners usually ate the loss and held the coins for future gain. But these huge mining operations don’t have that luxury, they’re operating on thin margins and they are cashing in all the coins they mine almost immediately. Because they’re a business, and they want profits NOW.”
But still, the markets can once again recover if the Bitcoin is boosted with huge investments in future, which is very likely. LTC, on the other hand, will have to wait until reaching the next bottom. It is there we believe traders will start buying once again (around $2).
Tip: Holding at lower prices is better than selling at huge losses.
To contact the reporter of the story: Yashu Gola at firstname.lastname@example.org
Subscribe to our daily forex newsletter for free by visiting www.forexminute.com/newsletter